The recovering after an announcement from Saudi Arabia’s energy minister that it plans to reduce oil supply by 0.5 mn barrels per day in December was very short. The main reason behind the short duration of this movement is based on U.S President Trump’s twitter sharing. He said on Twitter that “Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply.”
Well, how can we explain this situation in the technical sense?
After it tested the highest level since 2014 at 76.87 in October, we’ve seen a fierce downward pressure. The loss reaches to 25 percent in two months. Technically, it’s tested crucial levels at 58.40/50 region that is intercepted the long term upward trend line and 100 week SMA.
If the downside pressure contiunes, the 200 week SMA at 52.15 would be new target. However, I still do not think that these levels will be equilibrium levels for crude oil. If it holds at these levels, we will be able to see the 60.00-65.00 region again.
Guven established the FX Markets Department in the company and currently handle the leading of the execution and treasury teams in the department. He also has the responsibility of Development and management of all aspects of FX Sales and Marketing operations, including New Business Sales, Premium Client Management, Trading, PR/Media and Education. He Conducts research on money markets and macro- micro economies, advanced fundamental and technical analysis. He also interprets Financial Markets on television channels in Turkey.
Guven has a master’s degree abaout Quantitative Finance.