I am afraid that we will not be seeing low oil price anymore.
Crude Oil WTI has touch an all time low in Jan 2016 at 26.05, hence had seen price recovery to reach and hit 55.02 Jan 2017 which is more than 100% recovery in price.
After touching 55.02 crude oil wti has retest 40 as support which work out to be around 25% but still up 55% from all time low.
International business news began coverage on crude oil where some analyst began to be bearish and call for oil to retest 30s price range over failure by the OPEC oil producer meeting to cut supply and high US EIA inventory data level, supply outweigh demand.
https://www.cnbc.com/2017/06/21/oil-prices-like-a-falling-knife-as-sentiment-hits-all-time-low.html
As price of oil is highly violatile due to its nature influencing by performance of US dollar, geo-political tension in middle east and the korean peninsula, OPEC oil producer meeting to cut oil output (supply), US EIA inventory data, current hurricane that affect the oil rig operations and possibly a war that could drive up and down crude oil price. Crude oil WTI is a commodities which is price in US dollar denomination hence it is inversely related to the US dollar performance. Crude Oil is also a barometer of whether an economy is in a recovery or downturn where in the summer, lots of Americans will drive for a staycation.
Base on technical analysis (TA)
I had observe Crude Oil WTI had display a rounding bottom chart pattern as illustrated by the green line. possibly a small cup and handle pattern which lines are not drawn.
Crude oil WTI has wall of resistance to climb.
1st level resistance is support turn resistance red color classical support neckline is at 61
2nd level resistance is at 73.
3rd level resistance is resistance blue color line at 86
4th level resistance is support turn resistance red color classical support neckline is at 90
5th level resistance is resistance blue color line at 117.
my realistic target for crude oil which i think a bigger rounding chart formation should be at the price range of 75 to 90.
http://www.mining.com/web/next-oil-price-spike-may-cripple-industry
https://www.epa.gov/emergency-response/types-refined-petroleum-products
please refer to the below link for crude oil explaination.
https://en.wikipedia.org/wiki/West_Texas_Intermediate
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.
