Oil: Supply Cut by OPEC+, Potential Bull Run?
Updated
Hi Fellow Traders,
Oil prices have impulsively rebounded after reaching the EMA200 line, thus continuing their bullish trend. Concurrently, the prices have formed a falling wedge pattern, which was subsequently followed by a breakout of said pattern. Additionally, the MACD Indicator has exhibited a bullish divergence. The breakout of this pattern and the presence of a Bullish Divergence both signal the potential for an upcoming upside movement, targeting area 1. Following the attainment of target 1, we anticipate a possible pullback to the yellow zone before the continuation of its movement towards the second target.
Fundamental Drivers
Beyond technical factors, oil prices might sustain levels above $80, supported by diminishing oil inventories and supply reductions from the OPEC+ coalition. It is expected that Saudi Arabia will prolong a voluntary oil output reduction of 1 million barrels per day into October.
It is essential to note that the analysis will no longer hold validity once the target/support area is reached.
Please support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below!
Disclaimer:
"Please note that this analysis is solely for educational purposes and should not be considered as a recommendation to take a long or short position on
USOIL ."
Oil prices have impulsively rebounded after reaching the EMA200 line, thus continuing their bullish trend. Concurrently, the prices have formed a falling wedge pattern, which was subsequently followed by a breakout of said pattern. Additionally, the MACD Indicator has exhibited a bullish divergence. The breakout of this pattern and the presence of a Bullish Divergence both signal the potential for an upcoming upside movement, targeting area 1. Following the attainment of target 1, we anticipate a possible pullback to the yellow zone before the continuation of its movement towards the second target.
Fundamental Drivers
Beyond technical factors, oil prices might sustain levels above $80, supported by diminishing oil inventories and supply reductions from the OPEC+ coalition. It is expected that Saudi Arabia will prolong a voluntary oil output reduction of 1 million barrels per day into October.
It is essential to note that the analysis will no longer hold validity once the target/support area is reached.
Please support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below!
Disclaimer:
"Please note that this analysis is solely for educational purposes and should not be considered as a recommendation to take a long or short position on
USOIL ."Note
Breakout confirmed of the horizontal classic resistance area, we expect the price to hit our target :)Note
Hit Target 1, Cheers to us :)Note
Positive Sentiment for Rising Oil Prices Hypothesis:Saudi Arabia has officially declared the continuation of its independent production reduction of 1 million barrels per day, extending this measure until the conclusion of December. Concurrently, Russia has reduced its oil exports by 300,000 barrels per day, a commitment that will remain in effect until the end of the current calendar year.
Trade closed: target reached
Hit Target 2, Congrats the bull run doesn't end yet :)
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.