Technical Analysis


Oil continues to climb after a record-breaking day yesterday


ForexLive

The jump today could in part be due to dollar weakness as well but oil is finding some reprieve after a dramatic fall on Tuesday towards the $20 level.

Prices jumped by over 20% overnight – but in dollar terms, it was only over $4 – and price is up by another 8% today ($2 in dollar terms) as the bounce continues.

From a technical perspective, oil is looking to find some steadier footing as price now inches back above the 100-hour MA (red line), a level that limited overnight gains.

The next key level will be to look towards a test of the 200-hour MA (blue line) to see if buyers can build any momentum to chase a move back above $30.

Fundamentally though, oil still has to contend with the Russia-Saudi feud and continued global slowdown as a result of lockdowns across the world due to the coronavirus outbreak. That should limit gains and see oil struggle to keep solid momentum well above $30.

But from a valuation perspective, you can expect some bargain hunters in the $20 region – for now at least, until the next key development hits the market.



Source link

Articles You May Like

forex scalping trading Concept เทรดสั้นอย่างไรให้มีกำไร
A near empty calendar day to end the week in Europe
Major indices end the day with solid gains and at the highs
Trump, White House tells Wall Street execs the coronavirus lockdown may last beyond Easter
ICT – Mastering High Probability Scalping Vol. 1 of 3

Leave a Reply

Your email address will not be published. Required fields are marked *