Taking a look at Oil today for the chart of the day.
One of the more volatile assets on the market, Oil has had a turbulent 6 months, trading down from highs of $76.88 to the lows of $45.15 all within the final quarter of 2018. 2019 however, has seen it recover a good portion of that and we are now trading at $64.44, April has seen Oil stop in its tracks and for a good portion of this month Oil has been range bound between $63 and $65.
We have been following on the Daily chart over on our European roundup, available here ->European Round – April 16th so we’re going to zoom in a little bit today and take a look at the hourly chart for Oil.
What we can see is that Oil is currently very much supported by the bullish trendline that stretches back to the low of $45.15 however, we have definitely met some resistance at the monthly R2 pivot level seen on the chart. As we can see the price has risen to meet this pivot level 4 times now and has struggled and failed to break before taking a leg lower, also of note is the fact that the RSI has pushed into overbought with every push towards this level.
Although the asset has met resistance and somewhat stalled its 5-month long rally, something worth bearing in mind is OPEC’s production cuts and the U.S. sanctions on Iran & Venezuela and the effect they are having on supply of the asset.
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By Alex Simcock
This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.
Sources: Go Markets, Tradingview