June 27, 2018
As we have mentioned in our previous report that bulls are finding support from an uptrend line in the crude oil and we proved it, I hope traders have made smart profit from this anticipated move. By looking at the daily chart we can see that black gold is providing us strong bullish marabuzo candlesticks which seems like bullish storm has arrived. Overall black gold has made high of $72.83 level then it retraced almost 61.8% as per Fibonacci retracement theory.
Well after a strong bullish momentum some profit booking was expected but now once again bulls have taken the charge and taking the pair towards north side. It seems like they are approaching the $72.83 level once again. Odds are in favor of bulls and generating bullish signal. Intraday bias remains bullish on the pair as long as crude oil is trading above the moving average lines.
Crude oil price is fueled up supply constraints in both Canada and Libya, while the US pushes for other nations to join the US in snubbing Iranian oil exports beginning in November. On the other hand, the weekly report released by the American Petroleum Institute showed that crude inventories in the United States dropped by 9.2 million barrels in the week ending June 22 to surpass the experts’ expectation for a decrease of 2.6 million barrels.
The short term to intermediate term trend is up so in a uptrend market always buy on dips would be profitable opportunity. A bullish crossover on MACD indicator is favoring the bulls and providing us bullish signal for the time being and RSI is also providing bullish signal from above 50 range. The $72.83 level is immediate resistance level followed by $75 whereas $65 level is strong key support level followed by $63 level.