Crude Oil on Thursday 18th May 2017, Crude Oil May futures prices Up by 47 pts (1.49%) closed at 3203, trading range between 3118-3224 On the New York, Mercantile Exchange, Crude oil for February delivery on the New York Mercantile Exchange to settle at $49.35 a barrel.
Oil futures rose on Thursday, growing optimism that big producing countries will extend output cuts to curb a persistent glut in crude, with key benchmarks heading for a second week of gains.
Despite the high level of compliance from OPEC members with the deal to rein in supply, global production remains above the five-year average, as non-OPEC members, who are not part of the supply-cut agreement have ramped up production.
On May 25, leaders from OPEC and other producing countries will meet in Vienna to decide on output policy.
The largest oil producer in Russia will meet agreements with the grouping on oil output reductions, the companys chief executive told reporters in Berlin on Thursday.
Traders may note today’s economic event
U.S. Baker Hughes Oil Rig Count (GMT 22:30 LOCAL 10:30 PM)
Baker Hughes will release weekly data on the U.S. oil rig count.
PREVIOUS – 712 Expected to increase 717or 720
You could have noticed yesterday that, as per our Research Outlook and Chart Representation, the overall market movement has been the same as predicted by us in our report.
We had clearly mentioned that crude oil will be hitting upside which is bad news and also good news in disguise as the reaction had led to the up movement of prices.
New formation has evolved as a “Rising Wedge continuation Pattern”. In this pattern, the current uptrend continues to rise to 3275-3330 level upsides and the rally is expected to move to 3330 level in a short span of time.
The four-hourly chart of crude oil prices shows that crude remains range bound. Prices have recovered the 50% Fibonacci retracement level which was calculated from the move from 3479 down to 2839. A new range appears to have been created that is capped near the 3234 level. The 38.2% retracement is the bottom end of the range which is seen near 3080.
We analyse that, Today the crude market will be hitting the upper side continuously. A selling pressure may occur around 3270 level. If it crosses, then the next level will be 3330 which is the selling point and that’s the profit booking place.
This is the channel resistance point and the US-rig count is expected tonight. Moreover, its week end profit booking.
Research Report call:
Crude Oil Buy on dips at 3210-3220 Target 3250-3277 Stop loss 3189.
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