US Oil Forms M-shaped Pattern, Good to Sell Below $48.60
- Pattern Formed -M- shaped pattern
- Major support $48.60
- US oil has jumped till $50.08 yesterday but not able break above $50.18 high made on May 26th 2016.
- The recent rally in WTI crude was fuelled by militants attacks on pipelines and oil infrastructure in the southern Niger delta have crippled the production in Nigeria.
- Exports have expected to dropped to 990000 barrels per day from 2.2 million barrels per day .
- Crude oil prices is expected to show a technical correction in coming days as OPEC meeting and Fed rate hike looms.
- Technically any break below $48.60 will drag the US oil till $46.60/$45 in short term.
- On the higher side it should break above $50.18 for further bullishness. Any indicative break above targets $50.90/$51.50.
It is good to sell below $48.60 with SL around $50.10 for the TP of $46.55/$45