WTI Crude Oil Daily Analysis – July 5, 2017

On Wednesday, the Oil firms were determined over the geopolitical tensions that exist in the Korean peninsula and the Middle East, in spite the prices were covered as the supply is plenty even when there is rein in production led by OPEC.

The missile tests by North Korea are of great concern and a threat to global security according to traders who mentioned this as the reason behind the concrete prices. Another reason they stated for the firm prices was the political crisis between Qatar and an alliance of Arab nations led by Saudi Arabia and the  UAE.

The ANZ made an announcement that “Rising geopolitical risks should provide some support to gold and oil prices,” Crude prices seem locked below $50 per barrel amidst the happenings.

As per the pledge of OPEC to hold back production between January this year and March 2018 to prop up prices amidst ample supplies was the reason according to traders who have reported.

Technical Outlook

Crude oil prices closed neutrally with the reason being U.S. markets Independence holiday. Currently the crude oil prices hold the previous support which became resistance and similarly the previous resistance became support which is $47. I would suggest that you lock your 50% profit here. The Remaining would have to be maintained with strict stop loss around the support which is trailing at $46.30.

The next resistance floor prices at $48.36. I believe that there is a soaring chance to break above the resistance line and then reach towards $48.5-$49 in the near term scenario.  Usually this struggling can be expected on every occasion the prices try to breakout.

Crude oil prices are under buyer’s control which shows positive momentum bias, henceforth, I expect the rally will be extended to reach $49