Oil Rally May Stall

Oil Rally May Stall

Ekaterina Seredinskaya  | Jan 11, 2019 10:09

Oil shows biggest gains in two years, gaining over 8% this week after a rebound by nearly 10% a week earlier. As such, Brent has returned to the bullish market territory following aggressive losses during the fourth quarter. Still, the prices are still nearly 30% lower that the October highs above $86, so there is still room for a rally that could continue in a positive environment in the global financial markets.

Despite some progress in the US-China trade talks and signs of warming relations between the world’s two largest economies, the uncertainty over the trade deal continue to make investors cautious, which in turn could cap further upside potential in the crude oil market. Traders will closely monitor further developments on this front, with another round of talks will take place in late January.

Technically, Brent needs to confirm a break above $62 in the short term. The key local support now comes at $60. As long as the prices stay above this psychological level, the positive momentum prevails and could send the barrel to fresh one-month highs. The immediate resistance level comes at $62.50. In late November and early December, this area capped the bullish attempts, so it may be tough enough to break, especially ahead of the weekend, when traders are tempted to take profit after a decent rally.

Ekaterina Seredinskaya

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+