Last night, OPEC and its allies extended oil production cuts for 9 more months after last year's landmark agreement failed to eliminate the global oversupply or achieve a sustained price recovery.
The producer group together with Russia and other non-members agreed to prolong their accord through March, but no new non-OPEC countires will be joining the pact and there was no option set out to continue curbs further into 2018.
More news, OPEC, Allies to Extend Oil Cuts for Nine Months to End Glut
Unfortunately, the market reacted negatively to it. The price fell and closed at $48.90 with relatively high volume transacted - 1,139,346.
Daily chart of West Texas Intermediate (WTI) Crude Oil.
From the chart, notice the previous 2 wide range bar (circled in blue colour) that occurred on 8 March and 19 April. The price action associated with above average /or high volume on both occasions right before it broke the S-Trader Trend Tracker support level.
This time a similar situation happened last night but much bigger volume traded.
S-Trader Trend Tracker support levels (Daily chart)
Support1 = $ 48.39
Support2 = $ 46.61
Will the support levels and zone able to hold the price decline ?
Also, take note on both events the price fell further followed by a rebound forming series of Lower Low and Lower High.
Is a new low in the making ?
Source :
1) Metastock
2) www.bloomberg.com
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