Type:
Bullish Continuation
Key Levels:
Resistance: 92.88
Pivot: 88.82
Support: 86.78
Preferred Case:
With price expected to reverse off the support of the Ichimoku cloud, we are bias that price will rise from our pivot at 88.82 in line with the 61.8% Fibonacci projection and 61.8 Fibonacci retracement level and horizontal overlap support to 1st resistance at 92.88 in line with the horizontal swing high resistance.
Alternative Scenario:
Price can potentially break pivot structure and dip to the support level of 86.78 in line with the horizontal swing low support and 100% Fibonacci projection level
Fundamentals:
Crude oil prices retreated from 7 year highs as investor weighed the resumption of Iran nuclear talks, which reignited hopes for more oil supply from the middle east country. However , it is essential to take note that US demand for crude oil continue to outpace supply thus causing a gradual increase in prices. An increase supply may cause a temporary pullback in prices. Despite that it is crucial to know as long as demand outpace supply, price will continue its uptrend.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.