Positivism around OPEC deal extension fuels crude oil prices, according to the latest ADS Securities’ analysis. The team eyes a bullish outlook for the oil.
19 May, ADS Securities – The Brent Crude traded firmer for the second successive session yesterday after the Algerian Energy Minister, Noureddine Boutarfa, said that most of the participating nations would support the SaudiRussian proposal for a nine-month extension in production-cut deal until March 2018.
Positivism around OPEC deal extension fuels crude oil prices
As of now, the price is trading with an upside bias on the 1H chart, indicating at bullish technical outlook. Moreover, the MACD is sharply heading north, further substantiating the above view. Traders would keep an eye on weekly US oil rig count to be released later in the day.
Immediate resistance is positioned at the $53.20 level, followed by the $53.55 and $53.80 levels. A sustained break above the latter might lead to further bullishness in the Brent crude. Conversely, key support resides at the $52.55 level, followed by the $52.15 where EMA 55 is trading and $51.75 levels.
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