Crude Oil: Dips Supported

Technicals | May 08 2019

Bottom Line 07/05/19

Daily Trend: Down
Weekly Trend: Neutral
Monthly Trend: Neutral
Support Levels: 55.75 - 54.52 / 42.36 - 42.05
Resistance Levels: 66.60 / 74.36 / 78.57

Technical Discussion

In recent times Iranian sanctions have been all the news and likely influencing Crude Oil's gradual rise. Yet another provocative situation has been bubbling away in nearby Turkey. Over the past few days Turkey has sent it's Faith drilling ship into Cypriot waters. This has prompted a stern response from the U.S, combined with a Greek Cypriot counter threat. The EU has also recently issued their own warnings to Turkey as well.  Their ship is presently in a Cypriot exclusive economic zone (EEZ) with no signs of withdrawing to this point. The area is rich in Oil and Gas. Geopolitical issues have always been catalysts for stronger Oil prices. So when combined with a robust technical picture, which we will discuss further below, the potential for a perfect storm  to be brewing here becomes very real. 

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