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Exhausting stockpiles, putting great pressure on oil prices in the short term

OPEC and its ally, OPEC+, agreed to increase production by 400,000 bpd per month. They rejected a call from President Biden to increase supply further. On November 17, Reuters reported that the United States was asking major consuming countries to consider releasing when reserves to cool down oil prices.

With the efforts to increase supply pressure and call for the release of crude oil reserves, the oil price trend corrected sharply during the week and sometimes at the lowest level of the week. The large cash flow was also quick and reduced the holding ratio. hold with Brent before the correction begins.

In summary, large cash flow is cautious with oil and besides, the pressure of increasing supply in the short term may cause oil price to correct. However, looking at the medium-term trend, the uptrend will be supported by reserves. limited, so discharging reserves is only a temporary solution. Therefore, this correction is an opportunity to find a good position to establish a BUY position with Brent.

Pivot Point support and resistance lookup table. Use:

If the current price is higher than the Pivot point, a Buy position can be opened when the price corrects to support S1, with short-term targets at R1, R2 and R3 respectively.
If the current price is lower than the Pivot point, it is possible to sell Sell when the price technical retracement to the R1 resistance area, with short-term targets at S1, S2 and S3 respectively.

After exiting the medium-term downtrend, gold XAU/USD has entered a recovery phase and is currently building an accumulation base so that the price can continue to increase in the near future. Short-term indicators are still very prosperous, specifically:

MACD (12,26,9): The MACD line is above the Signal line and the histogram is narrowing, showing stronger buying momentum but selling resistance as well.
RSX(14) is above 50 and is correcting in the short term, showing that the buying force is still strong against the resistance of the selling force
DMI: The DMI+ > DMI- and ADX > 25 lines show that the uptrend is still positive

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