Fundamental
Overview
Crude oil has been on a
downward trend ever since the softer than expected NFP report at the beginning
of August triggered some growth concerns. That was then followed by the OPEC+
increase in oil production, although it was already expected.
The focus then switched to the
easing in concerns on harsher US sanctions on Russia as expectations on a
possible ceasefire have been building leading up to the Trump-Putin summit in
Alaska tomorrow.
The focus on higher supply
and lower demand has been weighing on the market despite the upcoming Fed rate
cuts. The sellers will likely continue to pile
in around these levels with a defined risk above the support now turned
resistance to position for a drop into the 55.00 handle next. The buyers, on
the other hand, will want to see the price rising back above the 64.00 resistance
to invalidate the bearish setup and position for a rally into the 72.00
resistance. The sellers might split their orders to pile in
both at the trendline and the 64.00 resistance. The buyers, on the other hand,
will target upside breaks to position for a rallies into new highs.
Crude Oil Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, there’s
not much else we can add here as the sellers will look for a rejections around
the trendline and the resistance, while the buyers will look for upside
breakouts
