Crude oil prices rally on Qatar-Gulf split – ADS Securities’ analysis shows how the oil prices rebounded after seven Arab nations cut ties with Qatar.
6 June, ADS Securities – The Brent crude weakened for the fifth consecutive session yesterday as concerns surrounding the global deal to reduce oil production resurfaced after Saudi Arabia, UAE, Bahrain, and Egypt announced to severed ties with Qatar, accusing it of supporting terrorism.
Crude oil prices rally on Qatar-Gulf split
As of now, the commodity is trading with a positive bias on the 1H chart, indicating the presence of bullish momentum in the near term. Also, a potential signal line crossover from below by the MACD, further validates the above stance.
Key resistance is positioned at the $49.50 level, followed by the $49.75 and $49.90 where EMA 55 is trading. A clear break above the latter is required to trigger bullish momentum in the Brent crude. On the flipside, key support resides at the $48.95 level, followed by the $48.60 and $48.35 levels.
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