Crude oil has finished its consolidation. However, the 5 December Crude Oil Price Technical Outlook shows that further weakness are very likely to occur.
5 December, Swissquote – Crude oil markets has and continue to be very volatile, as the Monday session was negative yet choppy. This is as a result of too many issues surrounding the oil sector between OPEC and American drillers jumping on higher prices to keep this market very choppy and difficult to navigate.
U.S Crude Oil dropped below the 58.00 U.S Dollars a barrel level again as selling became heavy. The commodity has not been able to push through critical resistance and speculators may look for further downside potential in the near term.
5 December Crude Oil Price Technical Outlook
• Crude oil has finished its consolidation and is now ready to challenge the 60-dollar level. Expected to show a continued increase. Support is given at a distance at 54.81 (14/11/2017 low)
• In the long-term, crude oil has recovered after its sharp decline last year. However, we consider that further weakness are very likely. For the time being the pair lies in an upside momentum. Strong support lies at 35.24 (05/04/2016) while resistance can now be found at 55.24 (03/01/2017 high).
This article ‘ 5 December Crude Oil Price Technical Outlook ‘ was written by Yann Quelenn, Market Analyst at Swissquote.
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