Crude Oil analysis – 2 Dec 2019

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By: Ahura Chalki

Decisive week for WTI!

Last week, WTI mostly traded above $58 as optimism in trade talks, protest rallies in Iran and Iraq, was supporting the upbeat move. However, the week ended with a disastrous free-fall after the report by investing.com website about the continues of Russian Overproduction as well as the “Reuters” report of “OPEC and allied crude producers is averse to deepening output cuts when they convene next week”. The new week started with a bit correction amide of better than expected in the Chines Manufacturing PMI, earlier today. Thursday’s OPEC + meeting will be in focus this week and it’s expected to support the prices until the final statement of the meeting.

Technical analysis:

Technical indicators returned to giving the negative signals, except the EMA crossing strategy, which still supports the bulls. Parabolic SAR in the line with Stochastic, supporting the bears, while RSI also moves under 50-level, but with sloping up. $55.30 is the immediate and key support level and $57 is the key resistance, at the moment.

Pivot point: 55.87

Resistance levels: 56.78 / 59.08

Support levels: 53.58 / 52.67

Today the expected trading range is between 53.58 support and 56.78 resistance.


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