Oil prices have been rising since the end of December, rebounding as high as $75 (April 24) from the lows of $50.
We can see the 50 and 200-day SMAs around the same area of $69.
This area of $69-$70 can be considered as a strong support level and potential rebound point as long as there is no major news in regards to a globally slowing economy.
Neutral outlook for now, with a possible tight range of a few dollar in the next couple of weeks, mainly between $69 and $72.
Fundamentals that can have a big impact on this range and break it below or above:
The Saudis announced that they will increase their supply to Asia which is seen as a counter-measure to compensate for the Iranian market losses.
A sensible question would be if the OPEC will loosen up the production restrictions due to the oil supply issues coming from both Iran and Venezuela.
Crude Oil stock changes, USA production as well as trade deal developments should also be monitored.
To conclude, in case we see a break of the $70 level, the next point of interest would be $67 and then $65 which is the 100-day SMA.
On the upside, $75 would be a strong resistance should $72 is broken decisively.
We can see the 50 and 200-day SMAs around the same area of $69.
This area of $69-$70 can be considered as a strong support level and potential rebound point as long as there is no major news in regards to a globally slowing economy.
Neutral outlook for now, with a possible tight range of a few dollar in the next couple of weeks, mainly between $69 and $72.
Fundamentals that can have a big impact on this range and break it below or above:
The Saudis announced that they will increase their supply to Asia which is seen as a counter-measure to compensate for the Iranian market losses.
A sensible question would be if the OPEC will loosen up the production restrictions due to the oil supply issues coming from both Iran and Venezuela.
Crude Oil stock changes, USA production as well as trade deal developments should also be monitored.
To conclude, in case we see a break of the $70 level, the next point of interest would be $67 and then $65 which is the 100-day SMA.
On the upside, $75 would be a strong resistance should $72 is broken decisively.