Crude Oil Analysis
Afternoon Session: Bullish pattern observed on 1hr chart for Crude oil, will it hold the support?
Highlights:
- Crude oil prices remained below $72, impacted by an unexpected rise in U.S. crude stockpiles.
- According to EIA data, U.S. crude inventories increased by 1.338 million barrels last week.
- MCX prices look to get support at 5780 and resistance at 6060.
Overview:
Crude oil prices remained below $72, impacted by an unexpected rise in U.S. crude stockpiles, which overshadowed heightened geopolitical tensions in the Middle East. According to EIA data, U.S. crude inventories increased by 1.338 million barrels last week, contrary to market expectations for a 675,000 barrel decrease. Despite geopolitical concerns, including Houthi attacks on Red Sea shipping and the suspension of production at Libya's Sharara oilfield due to political protests, the surplus in U.S. inventories weighed on the market sentiment.
Outlook:
CRUDEOIL observed a bullish XABCD Harmonic pattern on the hourly timeframe and is displaying a promising BULLISH pattern. A significant indicator is the potential breach of the 23.6% Fibonacci level at 5965. Should prices close above this level, the path seems favorable for a bullish trajectory. Eyes should be on the target at the 61.8% Fibonacci level, sitting at 6036. This pattern suggests a positive outlook, emphasizing the possibility of further upward movement in CRUDEOIL prices. Traders may consider adopting a bullish stance in anticipation of these developments.
Support and Resistance Levels:
