Crude Oil Price Hits 10-Week High, Resistance Nears
What's on this page
Brent Oil and US Crude Oil Prices and Charts:
- Bumper US labour data fuels the recent rally.
- Venezuela sanctions crimp supply.
Crude Oil Testing a Multi-Month High
Oil closed the week on the front foot after a strong US labour report helped underpin the recent rally while US-imposed sanctions on Venezuela cut supply to a market already hit by falling OPEC production. The combination of better-than-expected economic data and reduced supply sent crude oil to a peak of $63.38/bbl. a level last seen 10-weeks ago. The market is currently taking weak Chinese growth in its stride, although this week there will be no data or economic news as the country closes for a week-long celebration of Chinese New Year.
Crude oil recently took out resistance at $60.63/bbl. and is now using this level as short-term support. The next important resistance level is around $2/bbl. higher at $65.59/bbl. the 50% retracement of the June 2017 – October 2018 rally. This level should hold firm in the short-term, although the medium-term outlook for crude remains positive with the combination of the 200-day dma at $70.70/bbl. and the 38.2% Fibonacci resistance at $70.56/bbl. the next level to highlight.
Brent Crude Oil Daily Price Chart (March - February 4, 2019)
IG Retail Sentiment data show that traders are 64.1% net-long US crude oil – a bearish contrarian set-up – but a combination of daily and weekly sentiment shifts suggests that prices may continue to move higher.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.