Crude Oil recap for 24.05.2018
Crude Oil made an opening at 71.75 Yesterday and made a high at 71.88 after that as news for increased output from OPEC and Venezuela came in and Inventories data still heavy on the price tumbled it towards 70.42 and the price closed at 70.53. With the initial boost from Iranian tension the price has reached 72.78 as a high and since then it is going lower as it is turning to be in correction mode as warned in previous article that the price may want to test 70.25 and try to move lower as well. The figure was breached under the lower line which signals that there may be a bigger reversal as the wedge is going in to "play mode".
Selling will continue bellow 70 as a main target and from there on the price will find other points of support to take breaks. Bears will over claim the general bias and sentiment of the Oil and will dominate the movement if price goes under 70 and remains under that when Bulls try to test it. Shorting the commodity on the tops is the best option here as now productions seems to be increasing... again. Watch out for any events and next Thursday's inventories report. If production continues, maybe the inventories again will show a big cushion of overflowed Oil. Price will be pressured again. There is time of course to see the forecast as well and we'll see what happens.