Russia’s Energy Minister Alexander Novak wiped out the hope on agreement on oil production limitation. Mr. Novak said that It makes no sense now for Russia and Saudi Arabia, the world’s biggest oil suppliers, to work together to influence the market, even as U.S. shale production is poised to rebound next year.
OPEC General Secretary Mohammad Sanusi Barkindo was reported will meet Mr. Novak to have discussion before energy conference next month.
Oil price has fallen, currently is moving below 20 MA and 50 MA on hourly chart. 20 MA has crossed below 50 MA. We can see that the price currently is testing intraday key support at 49.13. If the support breaks, we probably will see another bearish with 48.75 as target and 48.34 in extension.
Note that hourly stochastic and CCI are oversold in general. As alternative strategy, watch for bearish signal confirmation on a pull-back move to within the resistance area at 49.74-50.11 before taking short position with 49.51 as target and 49.13 in extension.
Be careful if the price managed to break resistance 50.11 because it will turn the intraday bias into bullish and possibly will be followed by bullish move to 50.34-50.72.
– Sell on break of 49.13; target at 48.75 or 48.34
– Sell on bearish signal confirmation within 49.74-50.11; target at 49.51 or 49.13