Commodity Samachar, Pune – On Monday, we saw a drop in the crude oil rate just in the afternoon, but the reason behind it is something truly exciting.
On Monday, the price of oil fell $2 just 2 days ahead of the US. FED meet. This was coupled with the concern about China’s fuel demand growth and Russian crude supply weighted on the market.
As per several indications from market sources, they expect that the US central bank will leave interest rates unchanged when it concludes its 2-day monetary policy meeting happening this Wednesday.
In other news, Goldman Sachs has lowered its price estimate for Brent crude to under $90 per barrel by the end of 2023 after 2 previous reductions. This has been done due to the weak data arrived from China, one of the world’s biggest oil importers.
The final blow to crude oil came from news arriving from Iran. Oil prices fell in the Asian trade after Iran’s supreme leader said that the country was open to a deal with the West over its nuclear programme.
Ayatollah Ali Khamenei, the Supreme leader mentioned that a deal was a possibility if Iran’s nuclear infrastructure was kept intact. The comment by Khamenei paved the way for fear pertaining to a nuclear deal among oil traders given that it could flood the market.
Monthly Chart Outlook – Crude Oil:
On Monday, technical analysts at Commodity Samachar witnessed a rally going on up to a higher level from a lower level.
From that point onward, it hit a high of 123.66 points. After consecutive highs, there was a significant fall in crude oil prices. Currently, it is trading at a rate of $68.
However, we expect that it shall remain in between the $65 – $61 range and there will be a buying opportunity with a positional stop loss of $40.
Traders can initially see an upside target of $110 and it will stretch to $125. Finally, crude oil will rally and reach a magnificent high of $140. Traders will be able to see such a high level in the market.
All traders should anticipate something big on the way. A Fibonacci extension is being seen in the current crude oil chart.
The Fibonacci extension that’s forming will hit its first target of 0.38%, then it will follow the trend and hit 0.50% and the final target would be 0.61%.
For crude oil to reach its target, it shall be completing 24-36 months. We are expecting crude oil to reach a target of $140.
Crude oil’s Initial resistance at $75
many questions remain to be answered. We’ll be back with updates on this sensational news.
Commodity Samachar
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