Forex Forecasts Technical Analysis

The Consolidation of the Black Gold Quotes

black gold prices
oil quotes

The black gold market is still dominated by the bulls. The futures for the WTI crude oil grew by more than 2% during the last week. The oil quotes have stabilized. The financial markets participants are waiting for some additional drivers.

The news background analysis:

The oil quotes were supported thanks to the Forties pipeline suspension. It is used for delivering raw materials from the North Sea. This caused decreasing of oil inventories in Europe.

The oil prices updated their local highs after the report of the U.S. Energy Information Administration was published:

– Oil inventories: -6.495 mln barrels;

– Gasoline inventories: +1.237 mln barrels;

– Distillate stocks: +0.769 mln barrels;

– Oil production: 9.789 mln b/day (+9kb/day);

Increasing of the oil production in the US still puts pressure on the black gold price dynamics. The U.S. Energy Information Administration predicts that the production of the shale oil will increase in January.

The technical pattern on the black gold market:

Support levels 57.60 USD, 57.00 USD, 56.40 USD

Resistance levels: 58.20 USD, 58.50 USD, 58.85 USD

The black gold quotes are in the flat movement at the moment. The whole technical pattern is mixed for me. 57.60 and 58.20 are the key support and resistance levels.

As for indicators signals, they don’t give us any accurate signals. 50 MA has moved above 200 MA. The MACD histogram has reached the negative zone. I advise you to open transactions from the key levels.

You may open long positions after the quotes fix above the 58.20 local resistance level. The nearest take profit goal is the 58.50-58.85 offer zone.

An alternative trade idea. The oil quotes may fall in case they fix below 57.60. If this happens, they can reach the 57.00 level. Also, use a trailing stop for any of these positions.

About the author

Valentina P

PR Manager at JustForex
I communicate to people, portals editors, etc. I help to improve brand awareness and answer questions.

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