ALB Limited 01.07.2020
Chart of the Day Brent Crude Oil In an Upward Trend
Based on the rally seen from yesterday as data showed U.S. inventories fell much more than expected in conjunction with the report that some OPEC members over-complied with the mandate to cut output, we saw the price of crude oil rally over 1% as a result. Crude oil inventories are scheduled later this after with the previous figure being 1.442M and a forecast of -0.7M. If the figures released are better than expected, the expectation would be to see the price of crude oil continue on its upward trajectory. From a technical perspective, the price is trading within a range. What’s significant about this range is that it is within the gap which occurred on the 6th of March 2020 where the price fell from a low of $45.18 to then open the following session at $35.71. In more recent times, the price has been unable to close above the swing high made on 23rd June 2020 at $43.93. We also have the 200 exponential moving average around $46.15 which suggest that if we get positive data and the overall market sentiment is bullish, it is likely that the price will move higher.
