US Oil declined sharply after hitting high of $49.39 on concerns that Hurricane Irma could dent demand in the world’s top oil consuming nations.
Hurricane Irma knocked out power to nearly four million Florida homes and business on Sunday after millions were told to evacuate ahead of storm. This hurricane will negative impact on oil demand.
Technically upside capped by 200 –day MA and any convincing break above will take the oil to next level till $50.40/$51.97. The minor resistance is around $48.09 (38.2% retracement of $49.39 and $47.25)/$48.60.
The near term support is around $47 and any break below will drag the oil down till $47 (61.8% retracement of $45.50 and $49.39)/$46/$45.50. Bearish continuation can be seen only below $45.50.
It is good to sell on rallies around $47.65-$47.70 with SL around $48.09 for the TP of $46/$45.50.
Hurricane Irma knocked out power to nearly four million Florida homes and business on Sunday after millions were told to evacuate ahead of storm. This hurricane will negative impact on oil demand.
Technically upside capped by 200 –day MA and any convincing break above will take the oil to next level till $50.40/$51.97. The minor resistance is around $48.09 (38.2% retracement of $49.39 and $47.25)/$48.60.
The near term support is around $47 and any break below will drag the oil down till $47 (61.8% retracement of $45.50 and $49.39)/$46/$45.50. Bearish continuation can be seen only below $45.50.
It is good to sell on rallies around $47.65-$47.70 with SL around $48.09 for the TP of $46/$45.50.