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Oil Traders focus on US Driving Summer Season

Friday, March 24, 2017 4:42 AM GMT

USOIL failed to break out the 54$-55$ area and forced in sharp downfall in 47$-48$. The market played bullish OPEC’s and some non-OPEC countries’ agreement to stabilize the production. However, OIL’s traders didn’t get any other catalyst to perform the next bullish move. Then news came up that OIL currently is continuing to extend a record oversupply during 2017 and traders found an opportunity to proceed on “hard” profit taking. On the other hand, investors are counting on the upcoming US driving the summer season where we can expect a rise in oil consumption, meaning, oversupply will fall while production will increase. The price is currently consolidating around 47$ on a critical support of 61.8%. Then we have a new support the rising trend line (white). Overall, the market bias remains bearish on daily timeframe. We need a valid breakout of 49.5$ level.  




The range is around 2$. Therefore, if price violates upper (49.5$) or lower level (47$) then it will activate a potential of 2$. In the short term, if oil can break out the blue falling trend line, it may see 49.5$ level once again (playing the range until breaks).


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