WTI at 5 Month high as U.S. announced it will cease to grant sanctions waivers to countries that import oil from Iran

Oil sustained above 65, heading to 67?

Technical: Crude oil is trading at 65.80, breaks the 64.80 a former resistance and now turned to support. Currently trading above the resistance 65 and above good support 64.30. Trend remains firm for upside till 66.80/67 levels initially. For the day one can add or hold buys till 65.50 levels for upside 66.30/66.90. A break upside 66.30 can hit the next resistance level at 66.60 (Jan 21, 2018 high) break and close above this level can test the immediate resistance at 67.70 (March 8th, 2018 High). Overall buy on dips is advised for the day.

Fundamental: On Monday, WTI crude prices rose by 2.7 percent to close at $65.7 per barrel. Prices touched its highest in levels since November 2019 after United States announced to levy further sanctions on Iranian oil. Moreover, US also stated that countries importing oil from Iran will have to face sanctions which might hit Asian markets the most. Market sentiments are bullish as supply cuts by OPEC and US sanctions on Venezuela and Iran (OPEC members) will further tighten the market supply. U.S. sanctions on Iranian Oil coupled with supply cuts by OPEC might continue to push prices higher.

SUGGESTION: BUY OIL TILL 65.55 FOR 66.30/66.80 ELSE SELL BELOW 64.20 FOR 63/62.80

Leave A Reply