Market Cap:
$255.9B
BTC Dominance:
68.14%
btc:
$9721.02
eth:
$196.64
xrp:
$0.27
Advertise
Forex

Crude oil price rebounds on weekend profit taking

Squared Direct | May. 27, 2019
Crude oil price rebounds on weekend profit taking

May 27, 2019, | SQUARED DIRECT - Crude oil came under heavy selling pressure last week, dropping by a whopping 10% to mark new lows before erasing 2.5% of its loss on Friday. With the US-China trade conflict heating up throughout the week, investors continued to price the potential impact of a weaker global economic growth on the oil demand outlook.

Additionally, the API's and the EIA's weekly reports both revealed larger than expected buildups in crude oil inventories in the U.S. to further weigh on the commodity. The last data of the week from the US showed that the total number of active oil rigs dropped to 797 last week from 802.

Meanwhile, US President Trump announced on Friday that they will be sending about 1500 troops to the Middle East after Pentagon said that Iran's revolutionary guards were directly responsible for attacks on tankers off UAE, suggesting that the tension in the area is likely to remain escalated in the near-term, which could continue to limit oil's losses.

Crude oil price technical analysis

Crude oil price rebounds as expected during Friday's session erasing nearly 2.5% from its losses after pulling back from the oversold zone. The price is currently trading above the $58 level with bearish momentum. The price seems to be well supported above the level so we will be focusing on the upside again with the $59.28 resistance level in our focus.

Crude oil price rebounds

Support: 58.02 / 56.69
Resistance: 59.28 / 59.99

Disclaimer

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.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.