FUNDAMENTAL
OVERVIEW
Crude oil costs got here beneath
some strain within the last a part of final week as we obtained a few bearish
catalysts. On the US-Iran negotiations entrance, there have been many blended indicators,
but it surely seems to be just like the Iranians are prepared to compromise given the grim
penalties {that a} no-deal may have.
In truth, the US is alleged to
be ready to maintain weeks-long operations towards Iran if wanted. Given the
uncertainty, it shouldn’t be shocking to see a rangebound worth motion within the
crude oil market. Tomorrow, we’ve the second spherical of talks in Geneva, so watch
out for market-moving headlines.
On the OPEC+ entrance, we obtained
a report
on Friday saying that some nations see scope to renew oil output hikes in
April, though a choice hasn’t been made but and talks will proceed forward of
the March 1 assembly.
CRUDE OIL
TECHNICAL ANALYSIS – DAILY TIMEFRAME
crude oil – day by day
On the day by day chart, we are able to
see that crude oil is consolidating between the 66.43 and 62.35 ranges as
negotiations between US and Iran proceed. There’s not a lot we are able to glean from
this timeframe, so we have to zoom in to see some extra particulars.
CRUDE OIL TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME
crude oil – 4 hour
On the 4 hour chart, we are able to
see the worth broke beneath the upward trendline which may both sign a reversal
or only a extra complicated pullback. For now, the worth is consolidating on the
62.35 assist because the patrons proceed to step in to maintain pushing into new highs.
The sellers will need to see the worth breaking decrease to increase the drop into
the 61.14 stage subsequent.
CRUDE OIL TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
crude oil – 1 hour
On the 1 hour chart, we are able to
see extra clearly the rangebound worth motion on the 62.35 assist. We have now a
robust resistance zone across the 63.30 stage the place we are able to additionally discover the confluence
with the downward trendline defining the bearish momentum. The sellers will
possible proceed to lean on the trendline with an outlined danger above the resistance
to focus on a break beneath the 62.35 assist, whereas the patrons will search for a
break increased to extend the bullish bets into the 66.00 deal with subsequent. The purple
strains outline the common day by day vary for as we speak.
UPCOMING CATALYSTS
Tomorrow we’ve the second spherical of US-Iran nuclear talks in Geneva. On
Wednesday, we’ve the FOMC Assembly Minutes. On Thursday, we get the most recent US
Jobless Claims figures. On Friday, we conclude the week with the US This autumn GDP, the
US PCE worth index for December, the US Flash PMIs and a possible US Supreme
Courtroom determination on Trump’s tariffs.
