On the technical side, the price on the cable chart has found resistance on the upper band of the Bollinger bands and has since corrected to the downside, with today’s candlestick ticking to the upside at the time of this report. The 50 SMA crossed and is trading above the SMA 100, which indicates that the bullish momentum is still very strong. Additionally, the Stochastic oscillator has reached its extreme oversold point, supporting the narrative. Today’s session is rather important to see where it will close, since it is trading exactly on the 23.6% of the daily Fibonacci retracement level so a close above the current level could indicate the continuation to the upside. On the other hand, if we see further corrections to the downside we might expect some support around the $1,24 price area which consists of the psychological support of the round number, the 50 day moving average & the lower band of the Bollinger bands.
Prices of crude oil rose on the back of optimism that OPEC would tighten its supply. The supply cut from OPEC, which was scheduled to begin in May, is one of many factors that have contributed to the price increase we’ve seen in recent months.