This post is also available in: فارسی (Persian)
By: Ahura Chalki
Oil Rockets need Fuel!
As with any other symbol, WTI also had a very volatile week. Oil started a week at $63.60, following the tensions between Iran and the US, tested the $65.43, the 9 months high and free-fall to $58.50 after easing the tensions. The week ahead, Oil will have the opportunities again to test higher prices as headlines from the Middle East will remain in focus, despite recent de-escalation, as there is a possibility that tensions may erupt again. On the other hand, if the trade deal will be signed, as it is planned to be at 15. Jan, when China’s Vice Premier Liu, head of Beijing’s trade negotiation team traveling to Washington, Oil bulls will have enough reason to start a new rally. However, current price is supporting still worries of more tensions, since after overthrowing Ukrainian aircraft by the Iranian defense system, President Trump had a string of tweets, supporting Iranian protests, which is not the favor of Iranian revolutionary guard and government.
WTI Technical Analysis:
In the daily chart, even though the candles are forming between middle and lower bands of BB, the price still moves above the trend line and 200 DMA. For now, $57.75, the 200 DMA is a strong support level, which trading above this level supporting the kingdom of bulls and breaching this level down, will bring the bears, back into the game. 50-hour average at $59.47, and then 10-week average at $61.04 will be next bullish targets while breaching $57.75, can bring the $56.30 and then 55.30 under the spotlight.
Pivot point: 59.11
Resistance levels: 59.50 / 60.02
Support levels: 58.58 / 58.20
Today, the expected trading range is between 58.20 support and 60.02 resistance.
Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.