Major update on crude oil
Crude oil crashed badly in last 2 trading sessions due to OPEC decision not to cut production , well OPEC has declared a war against US oil industry and they really think they can win this war by not cutting the production ? Its an oil war which leads world on a danger zone where oil is weapon , OPEC specially Saudi Arabia want to prices down so US shell oil companies make loss and they dont face competition but do they really think they could survive again most powerful country in the world . If oil sustain below 60$ then US shell production has to halt but we dont think it would happen .
Currently crude oil trading at 67$ after making lows of 63.70$ range , now if crude oil click our support of 63$ and manage to close below this level then expect 60$ – 57$ .
If crude oil click resistance of 70.20$ and manage to close above our technical resistance then expect crude oil to fire upto 73.50$ – 75$ .
Crude oil update conclusion : Technically crude oil may in high sell zone but we do not think its a sell on this level , avoid sell its a political commodity and it may show sellers nightmare like it did in 2008 so beware on sell side cause if you sell at 70$ you dont have any maximum upside but if you buy even at 90$ you will have loss maximum 90$ .