OctaFX | OctaFX Forex Broker
Open trading account

Oil rallies to near $49.00 a barrel

FXStreet (Córdoba) - Crude oil prices rallied more than 4% this Tuesday, and WTI crude oil futures surged up to $48.72 a barrel, following a EIA report that estimates that US oil production fell by 120,000 barrels per day in September.

Sweet, light crude traded at levels not seen since late August, having barely retreated from the highs. Also, the OPEC Secretary-General Abdullah al-Badri said that oil producers should collaborate to reduce the supply glut, giving additional support to the commodity.

Oil technical view

“Technically, the daily chart shows that the technical indicators have accelerated well above their mid-lines, whilst the price has broken above the daily descendant trend line coming from August high pointing for a continued advance. In the same chart, the 100 SMA is now the immediate resistance around 49.05 and the level to overcome to confirm a continuation rally”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the RSI indicator is hovering around 75, partially losing its upward strength, whilst the Momentum indicator turned lower, but holds well above its mid-line. Nevertheless, with the price holding near its highs, the downside seems limited, while a break above the mentioned 49.00 level should lead to a quick test of the 50.00 level”.

Support levels: 47.90 47.10 46.60. Resistance levels: 49.05 50.00 50.80.

Gold reaches 10-day high

Gold prices surged during the American afternoon, with spot extending up to $1,151.15 a troy ounce before retreating somewhat ahead of the closing bell. Physical demand remains low amid the long holiday in China, which means most of the latest gains are a result of speculative demand.
Read more Previous

NZD/USD bulls scrummage down like the All Blacks

NZD/USD is doing better in a better risk environment, along with commodities on the up again, this time with gold approaching $1,150 a troy ounce and WTI galloping to score above $47.0 a barrel. However, specifically, related to the Kiwi, the New Zealand Fonterra prices are up +9.9% for a fourth straight gain in a row for prices.
Read more Next
Start livechat