March 21, 2019, | SQUARED DIRECT - Crude oil price kept pushing higher yesterday and early this morning during the Asian session, prices are trading above the $60 per barrel mark after the EIA reported a larger-than-expected US oil stockpile on the week ended on March 15.
US crude oil supplies went down by nearly 9.6M barrels during last week. Furthermore, the current OPEC+ agreement to Cut oil output and ongoing US sanctions against Iran and Venezuela Crude oil exports, plus a weaker Dollar is providing the right momentum to drive the prices up.
Crude oil price analysis
Crude oil price is still surging to extend its impressive run by breaking above the $60 mark. The price is currently holding above the key support level and looks set to print new highs before entering the overbought zone.
However, a divergence between the price and the momentum is becoming clearer pointing towards a potential correction but in the meantime, we will be focusing on the $60.76 resistance level.
Support: 59.99 / 59.40
Resistance: 60.76 / 61.31
Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves a high level of risk. Therefore, Forex and CFDs may not be suitable for all investors because it is possible to lose all invested capital. Only invest with money you can afford to lose. Before deciding to trade, you need to ensure that you understand the risks involved. Seek independent advice if necessary. Please refer to our Risk Disclaimer