• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 2 hours End of EV Subsidies?
  • 2 hours Maersk's COO statment.
  • 7 hours Citi cuts Apple's price target
  • 4 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 8 hours Asian stocks down
  • 5 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 2 hours GOODBYE FOREIGN OIL DEPENDENCE!!
  • 13 hours China Builds LNG Icebreaker
  • 4 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 6 mins Trump accuses Google Of Hiding 'Fair Media' Coverage of him
  • 15 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 13 hours Price Decline in Chinese Solar Panels
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Prepare For Bearish News As OPEC Meets Next Week

OPEC

It’s been an up and down week for crude oil futures with the price action playing out as expected. Going into the new year, we were looking for a choppy, two-sided traded largely because of the uncertainty regarding compliance with the OPEC/Non-OPEC plan to cut production, trim supply and return price stability to the market.

On the upside, we expected prices to be capped by rising U.S. production, while on the downside, prices were expected to be supported by reports that countries who had agreed to limit production would announce compliance with the plan. Based the price action this week, we can conclude that we’ve seen a little of both.

Weekly West Texas Intermediate Crude Oil

The main trend is up according to the weekly swing chart. However, momentum has been sideways for the last four weeks. A trade through $56.24 will signal a resumption of the uptrend. A trade through $44.49 will change the trend to down.

Given the average weekly range, it’s pretty safe to say the uptrend is safe next week.

The major 50% to 61.8% retracement zone is $50.69 to $54.25. The market is currently straddling this zone and to be specifically, it is straddling the Fibonacci level at $54.25.

Based on the price action since December 16, the direction of March Crude Oil next week will be determined by trader reaction to the Fib level at $54.25.

(Click to enlarge)

Bearish Scenario

A sustained move under $54.25…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




Oilprice - The No. 1 Source for Oil & Energy News
-->