- US oil rallied sharply in previous week till $59.02 on increasing hopes of extension of OPEC production cut till next year. The commodity declined sharply after doubts on Russia to extend a deal to curb output. Market awaits OPEC meeting to be held in Vienna on Nov 30th for further direction. Any negative surprise will drag the commodity down till $56.50/55.30.
- The oil prices jumped almost 40% after OPEC and Russia planned to cut production by 1.8 million barrels per day.
- The commodity has taken support near 10 –day MA at $57.40 and shown a minor jump from that level. Minor resistance is at $58.10 and any break above will take the oil to next level till $58.41 (61.8% fibo)/$59.05. Overall bullish continuation only above $59.05.
- On the lower side, any break below $57.40 (10- day MA) will drag the commodity down till $56.64 (10- day MA)/$54.89 (Nov 14th 2017 low).
It is good to sell below $57.40 with SL around $58.05 for the TP of $56.60/$55.
