According to trades on May 30, the cost of July contract for Brent crude oil on the ICE exchange in London fell by $ 0.07 (0.15%) to $ 49.69 per barrel.
July futures for WTI on the New York Mercantile Exchange NYMEX fell by $ 0.23 (0.4%) and amounted to $ 49.10 per barrel.
Today, oil prices continue falling, not expecting positive news for the market on the basis of an opening of the OPEC conference on Thursday.
The cost of August futures for Brent crude oil on London’s ICE Futures Exchange fell by 0.8% to $ 49.51 per barrel.
Futures price for WTI crude oil for July during trading on the New York Mercantile Exchange (NYMEX) decreased by this time by 0.7% to $ 48.75 per barrel.
Oil prices will rise again
A break of the oil trend on NYMEX, which was signaled by Guppy multiple moving averages, was confirmed.
Oil has formed a long-term reversal pattern, with the price oscillator near the mark of $ 38, which became the basis for growth to the next resistance level at $ 48, while the next ascending target is around $ 58.
First resistance is located at the historic level of $ 48 and is reinforced by the proximity of the upper boundary of a multiple moving averages group, which was also situated near $ 48, when recovery growth began.
Both of these obstacles have already been passed. The upper boundary of the long-term average group fell to $ 46, while the price rose above that mark and, besides, above $ 48.
Traders are waiting for re-testing of the two resistance levels as a support, to confirm the rollback.
Group of long-term moving averages shrinks and reverses upwards. Changing of the trend direction is confirmed by shrinking, and then by the growth of the group of averages. Its width and direction signalize that investors will buy on any future rollback, pushing oil prices to historical resistance level, $ 58.
A successful break above $ 48 may quickly lead oil to $ 58, offering excellent short-term opportunities.
When oil prices were falling, the descending targets were calculated using the projection of width of the trading range downwards below each of the support levels. The width of the corridor for oil is $ 10. This helped to explain the price collapse from $ 108 to $ 38.
The same method is used to calculate the ascending targets for the future growth of oil. A break above $ 38 gives us the purpose near $ 48, while the break of $ 48 level transfers it to the level of $ 58.