Strong buying demand.
(By Yann Quelenn)
• Crude oil has surged and set up a new
resistance at 56.28 (06/11/2017 high). The
commodity is trading at 1-year high. Expected to
show further shot-term bearish consolidation.
Indeed the technical structure has a history of
decent consolidation phase.
• In the long-term, crude oil has recovered after
its sharp decline last year. However, we consider
that further weakness are very likely. For the time
being the pair lies in an upside momentum.
Strong support lies at 35.24 (05/04/2016) while
resistance can now be found at 55.24