Crude Oil Getting into 62 US$ Supply Area

Crude Oil got into the 62 US$/barrel price, which is a huge resistance area formed during the December 2016-February 2017 trading period.

However, last week was not a high momentum period, as you can see on the CLc1 daily time frame, where the TSS alert system is not showing highlighted prices when prices reached the referred 61-62US$ supply area , which should be understood as a slightly negative factor for an up-move continuation.

Last week, we told you that US$ Dollar was a key factor, and we were right as US$ Dollar controlled practically every price move during the 4 trading days. DXc1 is still challenging the 91 support area, which is a bullish factor. Volume was also a little higher compared with previous week, which is a positive argument for the bullish cause.

Last Friday was a red bar trading day for Crude Oil, which is still a reasonable bullish technical event right into the weekend and after crude oil CLc1 showed Higher Highs and Higher Lows during several days in a row.

From the fundamental point of view, OPEC supply cut deal seems to be working as Venezuela decrease production last December. At the same time USA drillers rig count was down in 5, summarizing a total count of 742, which is still 40% greater than 1 year ago.

Getting back into technicals, the key question is how deep the possible CLc1  next pullback will be. If CLc1 finally holds the marked 59 US$ as a minor support, an up-move continuation, looking for the next 66 resistance area, is a very likely technical event to be shown.

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