Oil price keeps falling as market doubts that the agreement on production cut between OPEC and non-OPEC producers will be effective.
Investors doubt that the agreement will boost oil price in current situation. However, report from the US Energy Information Administration showed that US crude oil inventories fell lower than expected and hopefully can prevent oil price from deeper fall.
OPEC and non-OPEC officials will meet again this weekend in Vienna in order to discuss about the details of last week’s agreement.
Crude oil remains under pressure. Note that hourly stochastic has crossed up. Therefore, there could be a pull-back move today. In that case, I would like to look for sell signal confirmation on a pull-back move to within the intraday resistance area at 50.26-50.61 with 50.05 as target and 49.70 in extension.
Be very careful if the price managed to break the resistance 50.61 because it will turn the intraday bias to bullish and possibly will raise oil up to 50.82-51.17.
Plan: Sell within 50.26-50.61; target at 50.05 or 49.70