Oil prices kept surging on Thursday after Saudi Arabia announced that it would be happy to see prices hit between $80 and $100 per barrel. The comment was a sign that the oil giant will seek to expand its production cuts once the 2018 deadline hits. Oil has moved up 7% this year, and it is currently one of the best-performing commodities. Oil also finds strength Provided by middle east conflict
President Donald Trump may have a problem with oil prices being “very high” as he tweeted “Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!”
On the other hand, U.S. Treasury Secretary Steven Mnuchin said on Saturday he may travel to China, this move could ease tensions between the world’s two largest economies
“North Korea has agreed to suspend all Nuclear Tests and close up a major test site. This is very good news for North Korea and the World – big progress! Look forward to our Summit” Trump said, as another good indicator to cool down the atmosphere between these two counties
On the daily chart, we can observe that a strong upward pattern is winning all the way. As the price had rebounded from the upper trend line, provided with breaking a pivotal resistance level at 66.1.
However, it has to be expected a correction for several reasons:
- The price has reached the broken up channel from which it has reversed two times before.
- It has reached also the up edge of another up channel besides a divergence on RSI
- Forming a three drives harmonic pattern along with hammer candle & two doji
So, the price is supposed to slow the wheel a little bit to retest 66.1 to 63.45
Us index has been intensively bearish on Daily frame, with a sideways movement during the last ten weeks.
There are perfectly well-noticed signs indicating that prices will be up active again.
Reversing from the support level at 88.35, bouncing from the upper trend line connecting the lows, and forming a double bottom, which is a reversal pattern, to give shape to a harmonic pattern (crab).
The price is facing a strong resistance test at the descending trend line from the high of May 2017, also with the red resistance zone (90.45-91.65).
If the price successfully breaks these levels, we can see it climbing up to its next zone (92.55-93.9). as it’s 61.8% & 78.6% Fibonacci, B harmonic level, and turn down from the high of 2017
On the daily chart, the price has reached supply area (1.243-1.252). which is also 61.8% Fibonacci. The price formed a flag that is considered a continuation pattern. After reaching its oversold zone in RSI & breaking the descending trend line connecting the highs it showed doji & engulfing candles, the price is expected to move up to the first target at 1.292