Crude oil trades toward $50

Technical Analysis

Saudi cut helping the price action

The price of crude oil is trading near the highs for the day. The price has gotten a boost on the talk of a Saudi cut in exports by 800K. 

The current price is up $1.67 or 3.46% at $49.60. The high for the day reached $49.79. The natural $50 level is within the sites of traders (the low today was at $48.11).

Looking at the hourly chart above, the price has moved above the November 29 swing low at $49.41. Watch that level for some support. A trend line comes in at $50.05 which matches the natural $50 target (give or take a nickel).  Above that at the $52 level might be a target. The price of crude traded to a high of $53.18 on December 14. 

The low reached $42.36 on December 24th.  President Trump has been taking full credit for the fall from his phone calls to global suppliers.  Saudi Arabia may have obliged simply to defuse criticism from the killing of Khashoggi by the Saudis. The high in crude oil on October 3rd corresponded with the killing of the Washington Post journalist.  

A move above $50, might lead to another call.  

ForexLive

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