Crude Oil Prices Forecast Analysis Update
Crude oil technical analysis
Will the history repeat itself ….. well if you ask me the answer will be yes !
We saw today almost 7% move in crude oil price, OPEC agrees first oil output cuts since 2008, an agreement was in line with an accord reached in Algiers in September. OPEC member Algeria was proposing to set a new production ceiling at 32.5 million barrels per day, down from current levels of 33.6 million
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One more thing about the VOL in crude oil futures:
Did you know that yesterday was the highest vol in crude oil trading in the markets since 2008 !
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Well so far so good the price is going up but……, do you remember the last calls with IRAN ?
In late February this year 18.2.2016 many talks many words was saying: The aim is therefore to freeze the processing capacities of the countries’ ownership of a significant increase in production capacities, such as Iran and Iraq. In other words, in the absence of an agreement with the Iranians or Iraqis, then the chances increase prices following the agreement very low.
Iran, for example, is the fifth largest oil producer of OPEC, and it plans to increase production in the coming year at least a million barrels of oil
What was the result: the opposite!
Wrote Here
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Now let’s talk business about crude oil prices
We can see two major things in the charts expect the meeting today
First, you can notice last month candle, this candle is absolutely bear candle, only move above 51.40 will confirm for more up movements in crude oil price
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Second, we can see head shoulder pattern in the chart, The head and shoulders is a trend reversal pattern. It marks a will to make a bearish reversal. The principle is the same like a triple top except that the second top is higher than the others (which are theoretically at the same height). So, the head and shoulders pattern is formed by three tops that will succeed.
The targets stay in 34-35$ crude oil price
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While if you are looking to sell, you should look for price closed below 46.20
The risk reward for this strategy Is 1:2 chance
Good luck
This review does not including any document and / or file attached to it as an advice or recommendation to buy / sell securities and / or other advice