Oil has recently been both stable and at the same time unstable in price. On the one hand, we see throughout the month the rates within the flat trend between 53.32-of 57.04 USD. On the other hand, the volatility is quite high and we can see on the chart that the lines of support and resistance have been repeatedly tested.
For a long time, oil was under pressure due to the trade conflict between China and the United States, as well as the decline in the global economy. Oil prices were supported by OPEC's efforts to reduce oil supplies, as well as sanctions against Iran and Venezuela. This week, oil rose in price within the flat trend, amid investors' optimism, encouraged by the beginning of a new round of negotiations between China and the United States in October, although this does not mean that it will be successful. The price increase was also helped by a reduction in oil inventories in the US this week.
We believe that the wave of optimism will not be long-term, and investors will soon return to safe assets. Therefore, the deals to SELL seem the most optimal at the moment. Most technical analysis tools also signal the efficiency of short trades. Points of entry into the market could also be specified at the levels of 53.32 and of 57.04 USD, a break of which would signal the completion of the trend.
