Crude Oil Gains On Intraday

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Crude Oil Gains On Intraday

Crude Oil Gains 1% On Intraday Chart

Crude Oil appears to have found support and is now trying to recover some ground. The Crude Oil is already up by 1% on Tuesday, which is a sign of relief for the bulls.

However, what's troubling is the OPEC report, which highlighted the oversupply of crude oil in the market. As a result, the forecast for global demand has been increased once again.

Crude Oil Prices May Decline To $40

According to a senior oil analyst, there's a chance that the oil prices will decline to $40. That possibility could come true once Donald Trump joins the office. He is expected to offer support to the US-based oil mining projects.

Meanwhile, the US Dollar Index (DXY) continues with its gains from Monday. It's safe to say the Trump trade is still ongoing as the Greenback is gaining against the 6 currencies.

The forecast for more rate cuts by the Fed this year along with the stimulus package from Trump presents an ideal situation for the US Dollar.

Right now, the WTI is trading near $68.66, while Brent Oil is trading around $72.45. Although the oil prices have recovered a little bit on intraday, the outlook is still very bleak.

Even if the OPEC members limit their production, the US is highly likely to up their production in the coming years. This means the US will limit its dependency on oil imports, leading to price declines.

On the way up, the resistance is found at $70.51, where the 55 SMA is present. This is followed by the 100 SMA located at $73.85.

The most important of all is the $76.74, where the 200 SMA on the D1 chart is present. Given the fundamentals, it is very difficult for Crude oil to cross the $74.00 limit for now.

In fact, there's a good chance that the oil prices are heading towards the support at $67.12. A break of this support will send the oil prices towards $64.75 and then $64.40.

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