Some of Arab countries decided to cut diplomatic ties with Qatar. ADS Securities present their analysis about Qatar impact on Crude oil prices. What is your projection?
5 June, ADS Securities – The Brent crude declined for the fourth consecutive session on Friday after the US president Donald Trump dragged America out of the Paris climate agreement while the drillers in the US added more rigs last week.
Qatar impact on Crude oil prices
The overall technical picture appears to be strong as price has crossed the EMA 55 from below, after a recent announcement by four Arab countries to cut diplomatic ties with Qatar. Moreover, a positive centreline crossover by the MACD further endorses the above view.
Crucial resistance is located at the $51.00 level, a surge above which might negate further bearishness in the Brent crude, paving way for the $51.45 where EMA 200 is trading and $51.60 levels as the next potential resistances. Meanwhile, immediate support aligns at the $50.35 level where EMA 55 is trading, followed by the $50.15 and $49.90 levels.
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