Crude Oil resumes resurgence on Wednesday. However, prices have continued in a sideway range in the last one week.
November 13, 2019 | AtoZ Markets – Crude Oil prices are gaining ground again on Wednesday shortly after an improved inflation data from the US. After dropping to $56.12 per barrel late in the London session, WTI crude oil price quickly surged to $57 representing a 2% gain in six hours. The same situation can be seen on the Brent crude oil which also had similar % gain to hit $62.75 per barrel. Overall, Crude oil has posted nearly a 1% gain today to reduce its weekly loss to -0.4% from -2.34% recorded as on Tuesday.
OPEC Secretary-General says no cause for alarm
Meanwhile, the OPEC Secretary-General has expressed optimism in price stability. He argued that there is no cause for panic in the Oil market. The Secretary emphasised on the OPEC+ deal that is set to run until March 2020. He was confident that the global economy remains strong and the Oil market is not in a bad state.
Crude Oil resumes resurgence after US inflation data
The US consumer inflation data that was released today came better than expected. As a result, the greenback got a little lift after a bearish week so far. US stock markets and Oil prices also gained significantly after Tuesday’s slumps following President Trump’s speech on the trade war.
Crude Oil technical overview: Elliott wave analysis
Technically, Oil prices are still in the bearish territory. Although there has been an 11% gain since early October, the rally is slow and corrective. In November so far, prices have been range-bound and we may have to look for short-term clues after a breakout. In the last update, we used the charts below for WTI and Brent Crude (All the charts used are from TradingView)
The two charts above show the two Oil benchmarks have been developing corrective structures (triple zigzag) since October. Meanwhile, prices have entered the reversal zones. However, there has not been any effort to push down. Brent Crude still has room to hit $65 and the WTI $59 which are the top of the reversal zones.
The price will most likely break upside after completing a bullish contracting triangle pattern (WTI) and a sharp zigzag dip (Brent). However, we should expect the price to be confined within the larger corrective rising channel. A fast dip form the top could follow. However, we will have to confirm with a break below the channel before accepting the possibility of lower decline.