Crude oil analysis – 9 Dec 2019


This post is also available in: فارسی (Persian)


By: Ahura Chalki

OPEC+ looking for above $60 a barrel.

OPEC+ meeting on December 5-6 and their production cut of 500 barrels a day, companioned the positive NFP to bring the lost hoped back into the market and push the prices to test over $79. By testing $59.73, WTI printed its almost 3 months high after a sharp rise and decline of September, after a drone attack on Saudis refineries. following these changes, “Goldman Sachs analysts have raised their 2020 Brent oil price forecast to $63 from $60 as they expect the global oil supply-demand balances to be 0.3 million barrels per day tighter than previously forecasted.” (FxStreet). For the week ahead, US-China trade talk and EIA report on Wednesday will be in the spotlight with the FED interest rate decision.

Technical analysis:

Technical indicators remain of more bulls in the Daily chart. RSI moves at 58, Stochastic still confirms more bulls, Heiken Ashi candles are green for the 4th trading day in a row, and EMA crossing strategy also confirms that. Candles are forming above all main EMA lines. $58.60 is the key level, trading above this level is a strong signal for more bullish to breathe the $60. On the flip side, breaching the $57.30 if will conform with $57, can change the direction.

Pivot point: 58.82

Resistance levels: 60.05 / 60.94

Support levels: 57.93 / 56.70

Today, the expected trading range is between 57.93 support and 60.94 resistance.

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