What's the outlook for oil
This week, Brent has reached the highest levels since the end of September. The surprise contraction of US crude inventories and as the prospect of deeper output cuts by OPEC and its allies represented the key positive drivers of the commodity's price.
Oil pushed above the 50-day MA at 60.50 and some previous highs, so it now looks like it has bottomed. At the same time, the price met resistance at 61.80 (100-day MA) yesterday. It has to overcome this obstacle in order to move to the next targets at 62.90 (50% Fibo of the September decline) and 64.50 (61.8% Fibo, 200-day MA).
Support lies at 61.00 (200-period MA on H4) and 60.50. The decline below the latter will make oil slide to the support line connecting the previous October highs in the 60.00 area.
This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments.
The views and ideas shared in this article are deemed reliable and based on the most up-to-date and trustworthy sources. However, the company does not take any responsibility for accuracy and completeness of the information, and the views expressed in the article may be subject to change without prior notice.
