Crude oil has ended the session on a strong note with a percent gain, Brent closing above 50MA and its key resistance level located at 61.25$. 

The oil price was boosted on Monday after Saudi Arabia’s new energy minister said, “A deal agreed a year ago by major oil producers to limit output was “until death do us part,” Arab News reported.

The news agency also reported, “Prince Abdul Aziz bin Salman wants the Organization of Petroleum Exporting Countries (OPEC) to strengthen and extend its agreement with non-OPEC producers, including Russia, he said in his first public appearance since being appointed on Sunday.”.

It is a piece of welcome news for oil bulls, and they performed well on Monday’s session. The erosion of important technical threshold at $61.25 is highly encouraging. The increase of the daily volatility and the buy signals on the daily indicators also suggest further upside potential towards its 200MA. Moreover, the price breaks through the three-month descending channel, now focus shifts to the five-month trendline.

Against this backdrop, the Brent is likely to break above the resistance at $62.75 and eye $63.50 and $63.80.

The supports stand at $62.00, $61.25 and $60.50 levels.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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