Crude Oil Weekly Analysis 22 February 2017

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CHARTING

The crucial points are:

1

In today’s sessions, the price of crude has opened higher than yesterday’s close and higher than 53.92 level of resistance, as OPEC has signalled optimism about the production cutting agreement among OPEC’s nations and Russia. On the contrary, the non- OPEC oil production countries have risen their oil production level in order to cover the gap created by OPEC’s production cut agreement. The price is possible to close lower than 53,92 level, concluded from the yesterday’s large upward spike, which signals the weakness of price to move higher than 53.92 level.

Crude oil inventories report will be released tomorrow, as President’s day anniversary in USA on Monday offset the usual release.

Charting outcome: Neutral

INDICATORS (computerized T.A)

The crucial points are:

2

3

The indicators are not providing a clear message about which direction the trend could possibly follow. The moving averages have kept the same slopes, while the spread between the positive and the negative dynamic has widened. The trend dynamic has risen by +35.50%, whilst the market’s volatility has fallen by -12.67%. Finally, the oscillators have passed into overbought levels.

Indicators outcome: Marginally bullish – Neutral       

CONCLUSION

Both indicators and charting seem to confirm the neutral market scenario. However, there are arguments arising from the indicators which suggests the marginally bullish path as well. If the price appreciates higher than 53.92 level, the next resistance is possible to occur at 55.25 level. On the contrary, if the price breaks lower than 52.72 level as support, the next support could be the 51.68 level.

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