WTI : Very long congestion
Good U.S. economic indicators and geopolitical risks maintain oil prices around $ 100 for several weeks. A new increase sustainable in direction of $ 150, as envisaged by many analysts and investors, could slow down the current economic recovery especially in the United States.
Some easing in prices has been observed in recent days following a declaration of Saudi Oil Minister Ali al-Naimi. He claimed that the country was ready to increase its production of oil in case of need. He ruled out any possibility of penury in this market despite the geopolitical tensions in the Middle East. Meanwhile, the will of the United States and Great Britain to tap into their strategic reserves in case of further rise in crude prices came also appease the short-term climate.
Technically, the situation remains neutral in both daily data and weekly data. The wainting-game of investors facing the current situation has led the setting up of a very long and very narrow congestion between USD 105 and USD 115. We will wait for the breakout of this zone to take upward or downward positions in order to benefit from any increase in volatility. An upward output could be violent.
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