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Oil Traders Get Ready To Sing O(PEC) Vienna

Vienna readies for OPEC decision day as markets see a final shuffling of the positioning chairs before today’s fireworks.

Crude oil had a very choppy session overnight as the street chased its tail back and forth on rumours and headlines ahead of today’s official OPEC meeting in Vienna. Both Brent and WTI traded in 2.50% ranges, but as the dust settled both contracts closed only slightly down on the day. Both were falling 30 cents to 63.05 and 57.25 respectively.

Asia has unsurprisingly, taken a look at the overnight ranges and concluded that things are best left well alone until where hear from OPEC and Non-OPEC later today. Both contracts trading uncaged in the early part of the session.

The technical outlook paints a somewhat darker picture though. Brent broke its short-term trendline on Monday and never recaptured it. It has now formed a formidable series of double tops above building strong resistance. WTI held its two-month trendline support overnight, barely staying above it this morning. The takeaway from this is that a nine-month extension of the production cut deal is priced in and anything less from Vienna today could see some uncontrolled spills in prices as long positioning runs for the exit door.

Brent

Brent Crude has double tops at 64.00, 64.45 and 64.85 to overcome now forming a serious zone of resistance to further rallies. Support is at 62.00, followed by the two-month trendline at 61.45 and then the crucial multiple daily lows 61.25 level.

[1]

Brent Crude Daily

WTI

WTI has resistance at yesterday’s high at 58.25 followed by its double top at 58.85. Much more importantly, it lies just above its two-month trendline support at 56.80. Yesterday’s low at 56.60 is just behind to offer interim support, but after that, the charts open up with no technical support until 54.80.

[2]

WTI Crude Daily

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley [6]

Senior Market Analyst, Asia Pacific
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia as well as in leading print publications including the New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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