After crude oil prices finished sharply lower on Friday, the ‘black gold’ rises on Monday morning on investors’ expectations that Saudi Arabia would pin down its production and as the new oil rigs in the U.S fell.
With concerns of overproduction, oil prices dropped by around 2% on Friday, with WTI tumbling back below $50 per barrel. On Monday morning, WTI crude oil is trading at $49.30 as of 7:30 GMT.
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Technical Outlook
Crude oil 4h chart indicates towards $47-$49 level after prices broke the strong Support neckline at $50.
This could be the right time to hold a short position. The downward pressure is likely to weigh upon the market as it is a head and shoulder reversal pattern driven market.