Chart of the day - OIL.WTI (05.04.2021)
Oil price fell slightly in early Monday trade following gains of more than 3% last Thursday, after OPEC+ reached a deal to gradually ease production cuts from May.
This week, indirect talks between Iran and the US will take place in Vienna as part of broader negotiations to revive the nuclear deal between both sides. Some analysts expect that as a result of these talks, some of the sanctions imposed by the US, including restrictions on the sale of Iranian oil, may be lifted.
Meanwhile looking at the H4 interval, one can see that buyers failed to break above major resistance at $61.92 and price pulled back. Also medium-term 50-day SMA (green line) crossed under the long-term 200-day SMA (red line). This has formed a bearish ‘death cross’ formation which can at times precede a turn lower. Next major support lies at $59.03. On the other hand, if buyers manage to regain control and break above the aforementioned resistance zone, then another upward impulse towards $63.76 could be launched.