The USOil contract found some support overnight, as both Saudi Arabia and Russia said separately they expected the agreed output cuts would be extended through the end of 2017, and perhaps beyond. The contract topped at $46.98 in Asia, though prospects for further U.S. shale production increases have seen prices ease back under $46.00 region into the N.Y. open. Baker-Hughes reported the 16th consecutive week of rig increases on Friday. Countering the bearish production hike, some are calling for demand increases through the remainder of the year, as global growth perks up.
The 4hr chart clearly suggests rejection of the $47.00 level and a strong downside break of the 20 period moving average as the price action continues to be bearish.
The rebound in the crude market on Friday helped my trade from May 1 (Monday) spike to target at 82.60 on Fridays close (May 5) for a net gain of 101 pips.
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