December 24, OctaFX – The price of crude oil started the week on a high note with Brent and WTI gaining by 1% and 0.85% respectively. This upward trend was not attributed to any major news.
The reason could be driven by investors belief that the low prices could hamper production from the United States. It could also be because of technical traders and algorithms who believe that the price is oversold.
Crude Oil Price Technical Forecast
The XTIUSD pair moved to a high of 46.22. Still, the current price is close to the 15-month low. On the hourly chart, the price is close to the 14-day and 28-day EMA. The RSI is at 50 and moving up.
In the short-term, the price could continue moving up. However, this could be a false breakout, which means that the price could resume the downward trend.
This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.