Crude oil analysis June 06, 2018

Crude oil analysis

Crude oil prices shed almost all of its gains yesterday from 70$ to 66$. Currently prices are flirting with 65$. US asked OPEC countries to produce 1 million barrels per day more. US request came after US president criticized oil producing countries to raise crude prices and showed concern on rising gas prices in US.  Incidentally Iran was also producing 1 million barrels per day before sanctions. Indirectly US wants to stitch the would of crude supplies which it opened as imposing sanctions on Iran. This is not a big quantity to ask as 1 million barrels are just 1-1.5% of total of global oil production.

This is very unusual request from US government, we dont usually hear this kind of news. However it seems we would hear a production hike in upcoming OPEC meeting which is due this month.

A good support on this major commodity chart stands at 64.70$, If traders break and sustain below this then expect 63.50$- 62.10$ in crude oil prices.

crude oil chart

crude oil chart

A good resistance on this major commodity chart stands at 66.80$, If traders break and sustain above this then expect 68$- 70$ again in price.

Crude oil analysis conclusion: Oil trend is flat to positive for now. We would advice to buy in dips with stop loss below our support.

Bitcoin analysis

Bitcoin ( BTC ) trading at 7500$, It gave a crack in evening session till 7300$ but recovered smartly from there. A good support on bitcoin chart stands at 7250$, If traders break and sustain below this level. Then expect good pressure in bitcoin price upto 7000$- 6800$ today.

A good resistance on bitcoin chart stands at 7730, If traders break and sustain above this level. Then expect good recovery in bitcoin price upto 7900$- 8100$ today.

Bitcoin analysis conclusion: Bitcoin trend is positive for now. So should we buy bitcoin here? Yes bitcoin can be bought here with stop loss of below today’s low and for target of 7700$.

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