Oil prices rarely stay at the bottom whenever they see a sharp sell-off. Given a few days to digest to OPEC+ statement on keeping production levels as they are people are now concluding that Saudi Arabia will be unlikely to boost its own production as the loop holes over OPEC member commitments provided. While the failure to agree on more cuts may mean OPEC is abandoning the $100 per barrel objective the upcoming driving season should be enough to take us back inside the prior daily consolidation zone.
Resistance
- 82.63 – Intraday High/Low
- 81.52 – 20D Moving Average
- 80.45 – May Range Play Low
Support
- 79.03 – Intraday Consolidation Resistance
- 77.86 – Intraday Consolidation Resistance
- 76.72 – June 4 Low
Oil saw a follow through rally Thursday with Brent crude within striking distance of the May Range Play lows. Note that our self-off and bounce looks pretty much like that of the drop at the start of February that eventually say prices consolidating, establishing the floor at 80.45. For now key for us will be the ability to push back above and keep the said 80.45 price point. Look for buys on long tails off 79.03 in the hourly charts, though a daily close above 80.45 may also be seen as a bullish entry.
