Oil prices been moving in the uptrend since November 2020 because of the news about vaccine that expected to boost oil demand. Notice that it been up from $33.90 to $67.80 a barrel in this last 5 months.

This morning there is a surprise news from OPEC and its allies, known as OPEC+, decided earlier this month to extend most of its supply cuts into April and with Saudi Arabia keep taking on a unilateral cut of 1 million barrel per day in addition to its OPEC+ quota. At the same time, today there are two importance economic data from China just released this 9 am such as Industrial Production and Retail sale. China Industrial Production increased +35.1% while expected to increase +30% and Retail sales increased +33.8% while expected to increase +32%. Both data are showing a very strong bounces, supporting forecasts of stronger growth at the world’s second largest oil consumer.

The current prices are showing the bullish movements and when the price increases as we have seen in recent months always lead to two main reactions. At first, traders will take their profit from the market and then waiting for another chance to get into the market again when the price is lower.

Here is technical part, Oil prices are moving in range between $60 to $$67.80 a barrel and the daily average price moves around $2.27. Suggest to wait the move down to $63.50 a barrel trader can place a buy position and put a take profit function at $65 a barrel and put stop loss function at $63 a barrel.

Analyzed by：Mr. ChhayHeng Chhea，Independent Analyst