22 September, AtoZForex.com, Singapore — Crude Oil jumped 4%, bouncing back on falling U.S. rig count. Crude oil prices moved higher on Monday, following a report from OPEC which had they forecasting the price of crude oil moving back to $80 per barrel in year 2020.
The the market is coming alive after erasing most of their losses from Friday’s massive sell-off despite being in shoulder season. Crude oil price fluctuates near the 80 EMA lines, keeping its stability above the 23.60% Fibonacci Retracement handle.
Such technical formation is keeping the chance for a resumption in the overall bullish trend, with candles targeting much higher level the 49.00 resistance level. That said, we are calling for higher Crude Oil prices, running contrary to most analysts opinion of a much lower price.
Currently trading at 46.70, Crude oil is capped within the trading range of 45.00 to 47.00, with prices holding support near the 20 SMA line. Having pushed through the 50 EMA line, momentum remains positive for the commodity with the candles printing near the resistance at 161.80% Fibonacci Expansion handle. In addition, Stochastic current positivity might push the price for some temporary bullish bias, which the breaking of 47.00 resistance, will confirmed the opening of way towards 49.00 level. In general, the bullish trend is suggesting potential upside action, as Crude Oil continues to incline.
Crude Oil traded in a broad range between 45.00 and 47.00, before settling at 46.90, up 4% on the session.Technically speaking, the chart is showing signs of an impending bottom; albeit near-term, as we see a sound support of the commodity at 45.00 level. However, a closing break of the support zone would indeed threaten our near-term forecast. Still, we favor the near-term upside in Crude Oil and with the hedge funds continuing to pare short positions in the commodity last week, this is a sign that they are no longer believers in big further price falls. Expected trading range for today is between 45.80 support and 46.90 resistance.