The daily chart of Crude Oil (WTI) shows the piercing
pattern formed in the last couple of days in the support zone between the
$90.00 and $92.20 levels.
Technically speaking, this is a reversal pattern that marks
the beginning of a rally. The closest target is in the $98.15 area, which would
provide a 5.9% increase in crude oil price.
Even though the Organization for Economic Cooperation and
Development (OECD) trimmed economic growth forecast in the euro area (according
to Bloomberg), the oil market could easily reverse on the agreement between
Iran and International Atomic Energy Agency on nuclear inspections.
Moreover, the technical outlook suggests higher prices in
the next month as the $90.00-$92.20 area represents a cluster of supports.
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