Type:
Bullish Rise
Key Levels:
Resistance: 116.61
Pivot: 111.20
Support: 107.09
Preferred Case:
On the H1, price is moving above the ichimoku cloud and has broken the descending trendline which supports our bullish bias that price will drop and rise from the pivot at 111.20 where the overlap support is to 1st resistance at 116.61 in line with swing high resistance and 161.8% fibonacci extension .
Alternative Scenario:
Alternatively, price could break pivot structure and drop to 1st support at 107.09 in line with the pullback support,50% fibonacci retracement and 61.8% fibonacci projection .
Fundamentals:
Overnight, price of Brent reached 117 and WTI at 114 on news that the G7 passed the proposal to fix a price cap on Russian oil . If OPEC meetings concludes with maintaining current production level, look for oil prices to continue climbing in the near term, giving us a medium bullish bias.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.