Crude oil struggling & retested previous support become resistance line
WTI crude oil prices edged lower on Friday as data revealing U.S. oil rig counts climbedintensified fears of a ramp up in U.S. output.
According to data from energy services firm Baker Hughes, pointing to signs of an expansion in U.S. output.The number of oil rigs operating in the US increased by 1 to 862, its highest level since March 13, 2015,
The increase in drilling activity comes followed by a report from the Energy Information Administration which said Wednesday U.S. oil output rose to a record 10.8 million barrels per day.
On Thursday, Algeria's oil minister said OPEC would focus on balancing the market rather than on easing production cuts and Iraqi's Oil Minister, said a production increase in the second half of the year was not on the agenda for the OPEC meeting.
Crude oil prices closed nearby previous support which has become resistance line wherein “Ascending broadening wedge“In this pattern, on the analysis of the daily chart, the prices have broken support at $65.90 and has secondly attempted to retest resistance line which was the previous support and has now become the resistance line (an upward sloping trend line) that comes around $66.90.
If the prices are unable to break the trend line above, then the prices will continue to fall downside. We can notice the price action below or above based the upcoming day's result.
Market analysis by RSI had oversold and triggered the level 32% which will pull back again to 40% level. Traders wait in anticipation for the OPEC meeting scheduled on June 22nd.