Heads Up For Oil Traders – OPEC Meeting In Focus Today
Arslan Butt • 1 min read
Over the previous week, we discussed the Crude Oil technicals in detail. Oil is still following the same technical levels seeing as it failed to violate old levels. Nevertheless, we can see some serious fluctuations in the Crude Oil today and even tomorrow. Let's find out why…
Key Technicals Points
- On the daily chart, oil has just completed 38.2% Fibonacci retracement at $48.50. That's today's immediate support.
- The 50-periods EMA is near $47, suggesting that the oil prices are far from their average prices & should fall back to the $47 zone.
- The double top resistance at $50.30 is still intact. We can see the bearish reversal here.
Crude Oil – Sideways Trend
August 7th – 8th – OPEC & Non-OPEC Meeting
As we know, despite all the efforts made by OPEC and non-OPEC members to cut supplies to underpin oil prices, they weren't able to support them. So today, the delegates of some OPEC and non-OPEC countries will meet in Abu Dhabi to address why some of the countries are falling back on their promises to cut production.
Impact of Meeting
I think the countries who failed to cut output earlier will try harder to control prices. Consequently, we are likely to see a sharp plunge in oil prices. The idea is to stay in sell below $50.30, to target $47.50 this week.