Brent crude oil jumped 3% on Monday morning in response to the OPEC+ extend its output cuts to the end of July. The 11th OPEC and non-OPEC Ministerial Meeting held via videoconference on Saturday, 06 June 2020.
The Meeting recalled the decision taken by all Participating Countries in the OPEC and non-OPEC Ministerial Meeting on 12 April 2020 to adjust overall crude oil production downwards, according to the OPEC official report.
Gains short-lived: After a sharp gap up, Brent crude oil lost nearly 4% from day’s high and has finished its rally by closing 3.5% down. A total of 7.50% down from intraday high. Finally, the long winning streak has come to an end rejected at the more top end of the Bollinger band. On the downside is $40.00 its 100MA, and $37 the mid-point of the Bollinger band can act as proper support. The medium-term support located around $34 and $29.30.
Straight run: The price logged higher for six consecutive weeks. Back in December 2019, the race lasted for five weeks and six weeks in April 2018. Based on this, we expect the current has limited headroom from the current price. Buying on dips preferred.
As long as $29.90 is supported, buying dips favor the trend. The daily RSI is overbought, and the oscillator has been remaining bearish.
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