After US President Donald Trump announced that “severe punitive measures” would be imposed against Riyadh, oil prices rose during the Asian session on Monday. At the heart of the conflict between the United States and Saudi Arabia are the charges of the murder of Saudi journalist and dissident Jamal Hashoggi. On Sunday, Saudi Arabia promised to respond if Washington imposes sanctions. The kingdom also noted that the largest exporter of oil "plays a significant and active role in the global economy". Mutual threats by the United States and Saudi Arabia increase concerns on the oil market, which contributes to the resumption of rising oil prices
At the end of last week, oil prices fell amid a collapse in the stock market, and also as a result of the revision of forecasts by OPEC and the International Energy Agency for Demand this year and next, downward.
At the beginning of the European trading session, WTI crude oil traded near the mark of 71.80 dollars per barrel. Positive dynamics of oil prices persists, despite the decline last week.
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Support and Resistance Levels
The price of WTI crude oil is in an uptrend, maintaining a long-term positive trend and trading in the ascending channels on the daily and weekly charts.
On Thursday, the price of oil found support at 70.70 (EMA50 on the daily chart). Having repulsed from this level, the price attempts to grow above the important support level of 71.55 (ЕМА200 on the 4-hour chart). The overall trend is still bullish. Immediate growth targets are located at resistance levels of 72.80 (May highs), 73.85 (July highs), 75.00, 76.80 (annual and multi-year highs).
In the case of the breakdown of the support level of 70.70, the targets will be the support levels of 68.60 (Fibonacci level 23.6% of the correction to the growth wave that started in June 2017 with the support level near the 42.00 mark), 68.10 (ЕМА144 on the daily chart), 66.35 (ЕМА200 on the daily). chart). While the price is above the key support level of 66.35, a long-term upward trend remains.
Support levels: 71.55, 70.70, 68.60, 68.10, 66.35
Resistance levels: 72.80, 73.85, 75.00, 76.80
Trading Scenarios
Sell Stop 70.20. Stop Loss 72.90. Take-Profit 68.60, 68.10, 66.35
Buy Stop 72.90. Stop Loss 70.20. Take-Profit 72.80, 73.85, 75.00, 76.80
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