Brent oil price close nearly a percent after the news US President Trump reimposes Iran sanctions. Before settling at 73.70$, the price made a high at 74.50$ extend the gains for the third straight session.
Turning to production data, Saudi Arabia pumped around 0.290 million barrels per day of crude in July; two OPEC sources said on Friday, down about 200,000 bpd from a month earlier, Reuters reported. It’s worth mentioning U.S oil drillers cut rigs in the week to August 03. Baker Hughes said the drilling rigs count down to 859.
Looking at the technical, the pace of the price action settled between 71.20$ and 75.85$ double top. Last week, the price traced out a short-term price top at 75.85$ via the formation of a double top pattern. The resulting downward started after the price rejected at 50MA; the ensuring corrective phase came to an end as price held the Fractal support level. This low suggest the price lifted the support from 71.20$ to 71.85$.
Any shift in the technical landscape indicates that rallies to a resistance between 75.80$-76.25$ should attract selling interest. Caution will be ordered if the price trade through the given resistance zone. In this case, 76.90$, 77.40$ and 78.50$ could even possible.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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