May 17, 2018 09:00 AM
Crude oil price has arrived near $71 post crude oil inventory decreased by almost 1.4mbpd. Crude oil is trading in completely uptrend from short term point of view and it is used to say that Trend is your friend so every dips should be converted as buying opportunity as uptrend line has been formed on the daily chart and aggressive buying can be seen due to critical situation in Venezuela and tensions in the middle east.
It seems like Saudi Arabia will be in favor to reduce the output and thus, provide the spike to crude oil. Fundamentally the upcoming elections in Venezuela and US refineries will be forbidden or not to buy Venezuela crude will be the center of attraction as these two geopolitical factors have enough power to change the trend or to continue to trend of crude oil.
From the technical point of view we can see that every swing is making higher highs and higher lows. Our bias remains bullish as long as $62 level remains intact. Other indicators like RSI and MACD both are supporting the bullish sentiments. The bulls are driving the car and seems like they are approaching the $80 in short term.