Oil surged on optimism producers will cut output. Oil was jolted higher by efforts across the globe to support prices as Saudi Arabia and Russia extended their pact to manage the market and Canada’s largest producing province ordered unprecedented supply cuts, though optimism was dented slightly after Qatar said it was leaving OPEC, according to Bloomberg.
Now the Brent Oil got reason to grow. But let’s look at the chart.
The market has bounced this last week from strong support at the level of 57-58 USD per barrel. Last week candle reminds me Doji candle pattern. It shows us, that the market is indecisive at this point and that it could happen potentially bounce. This week the market bounced.
Important thing for next grow is: break the main resistance at the 64 USD and get back above the trendline. Today (Monday) is only beginning of the week, so today candle cant mean nothing. Now the market is testing the important yellow trendline and there is still possibility of “bounce-back” to strong support 57-58 USD.
Oscillator RSI show us bounce also and Histogram on MACD is getting weaker. It means that the bears can be exhausted. This analysis serves as educational purpose only and can not be consider as investing advice. When you are trading, I recommend you to keep tight your money and risk management.