Brent crude oil down overnight to 60.00$ but holding early June low at 59.10$. Daily indicators being upbeat, watch out for new rebounds in the coming days.
The price is approaching impressive support here at 59.00$-57.70$. The area includes the 50MA-Monthly. Breaking below the support zone would increase the chances of continuing down towards 57.20$ its 200MA (Weekly).
Watch how price action develops around 57.70-57.20/57.00. Break lower opens the potential for 55.00$ and 50.00$.
On the higher side, there will need to be a breakout above the critical resistance 62.00$ and 63.30$ to envisage an extension towards 66.00$.
Turning to the fundamental news, we are a couple of weeks away to OPEC meeting.
Reuters reported that “Saudi Energy Minister Khalid al-Falih said on Sunday that OPEC would probably meet in the first week in July in Vienna and that he hoped it would reach consensus on extending its agreement to cut oil output.”.
S&P Global Platts reported, “Iran, which had been the lone remaining holdout on moving the meeting from next week, when it was originally scheduled, to July 3-4, surprised many OPEC officials Monday in offering a new proposal: July 10-12.”.
Whereas OPEC’s official webpage still showing 26th June will be the 6th OPEC meeting.
View: We remain cautious ahead of the OPEC meeting (Don’t know the exact yet) and also expect limited leg room (58.00-57.00$).
It is important to always keep in mind the risks involved in trading with leveraged instruments.
Have a question? Let us help!
A KTM Analyst is ready to assist you, click on the comment section below