Just when we thought Oil was beginning to price in the summer driving season in the US the brief push past its May consolidation highs was reversed as it spent the rest of the previous week easing. By the close Friday we actually had a bearish candle for May. Over the weekend we had an OPEC JMMC meeting that has turned out to be a non-issue as Production Levels among members were merely extended to 2025 and at this point demand or lack hereof is the markets key concern.
Resistance
- 84.68 – May High
- 83.56 – Intraday Consolidation Resistance
- 82.58/65 – 20D Moving Average / Yesterday’s High
Support
- 80.71 – Three Week Consolidation Floor
- 80.19 – February-March Consolidation Low
- 79.31 – Daily Consolidation Highs January
Over the course of the month we have seen a broadening pattern develop in oil with prices for the moment potentially defining a higher low. For now our bias will be to look for buys preferably having long tails in hourly charts given proximity to support levels at the 80.71 area. Our objective will be to test the May consolidation resistances once more, potentially clearly pushing through this time on the back of the upcoming driving season.
