Technical Analysis

Oil falls 2.5% after Trump tweet attacking OPEC

Trump knocks $1.20 off oil

WTI crude has fallen to $55.89 from $57.50 within the aftermath of Trump’s tweet saying that costs are too excessive.

Trump tweet

The drop in oil right this moment erases final week’s break above the January excessive because the market goes again to retest the previous resistance line.  

For me it is a traditional, wholesome retracement. In the end, I do not suppose Trump can jawbone down the supply-demand dynamics in oil. Whereas Trump says this, different US officers proceed to speak about getting Iran oil exports to decrease ranges. The Saudis are additionally much less prone to belief the White Home after flooding the market in Q3 final yr just for Trump to again down on Iran restrictions, resulting in the collapse in crude.

oil chart

Technically, regulate $55.55 as help however I believe the injury is finished from Trump and that optimistic danger sentiment right this moment shall be extra of a tailwind for oil as soon as it finds a footing.

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