OIL: Where To Next?
Looking at the daily chart we seem to be consolidating at the moment, with a range of 350 PIPs between $63.50-$60.00. The higher time frames show this especially well, given us no clear direction and a mixture of bullish and bearish candlesticks.
Fundamentally speaking the production cuts have helped push Oil to the high 60’s where it currently sits at $62.88 at the time of writing. We are lacking conviction in either direction in my opinion. Some would say we are forming a higher-low and others would contradict that with saying its a lower-high. Until we get a clear daily break of either end of the range then there is no clear direction.
We will look to continue to play the range until we are told to do so otherwise. With the 176th Meeting of OPEC set to take place on June the 25th our outlook towards production cuts will stay relatively similar, therefore not giving us an overall fundamental bias.
I anticipate price to stay capped in the bigger range of $60-$66 until then. Comment your thoughts below...?...