Crude oil surged and settled up by 1.36% at 4942 as Greek leaders agreed on an austerity package and employment numbers provided a bullish surprise.
Greece, the EC, the ECB and the IMF are meeting in Brussels today to determine if Greece has met its obligations to qualify for its second bailout package. The ECB decided to keep interest rates at the record low 1%.
President Mario Draghi stated that surveys confirm tentative signs of economic stabilization in the euro zone. Meanwhile, the BoE decided to stimulate the economy with another GBP50bn to insure the economic recovery continues.
Total US Crude Oil inventories stood at 339.2mbls as of last week, staying in the upper range for this time of year.
Over the weekend, Iran restated its threat to halt oil exports prior to the European embargo on July 1. Additional worries about Israel launching an attack against Iranian nuclear installations increased the session’s tension.
Now technically market is trading in the range as RSI for 18days is currently indicating 45.07, where as 50DMA is at 5127 and crude is trading below the same and getting support at 4898 and below could see a test of 4855 level, And resistance is now likely to be seen at 4969, a move above could see prices testing 4997.
Trading Ideas:
Crude trading range for the day is 4855-4997.
Oil’s rally was sparked by Greek officials reached an agreement on austerity measures for bailout package.
Over the weekend, Iran restated its threat to halt oil exports prior to the European embargo on July 1.
Additional worries about Israel launching an attack against Iranian nuclear installations increased the session’s tension
Courtesy: Kedia Commodities
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