PrimeXBT Analyst Kim Chua Expects Oil Price To Rally After Talks To Increase Output Stalled

The supply and demand battle of oil continues to rage as the talks around upping the output stalled once again. This delay of a supply increase of course bodes well for the oil price which has been on a bit of a rally recently.

Last week saw two OPEC+ meetings about increase in oil output which came to a standstill, leading prices of both Brent and Crude higher. The main objection came from Saudi Arabia

and while talks are to continue on Monday, it seems unlikely that they will come to any compromise.

This leaves the door open for a higher oil price in the months ahead, with the technical picture for oil still looking bullish, albeit early week may see some caution from traders as they wait for results of Monday’s meeting.

As we inch closer to the area around $76, the rally looks a bit tired and may pose some resistance as $76 was the high made in 2019 before the pandemic.Crude oil has not climbed to this level for two years and with talks still resuming, traders could take some profit off the table just in case a compromise is made, says PrimeXBT Analyst Kim Chua.

A lot of the continued price action of oil, and its potential to break through a resistance, rests and the outcome of these talks. Depending on the outcome, there could be significant moves in either direction for the price of oil.

Should a knee jerk pullback occur from a compromise shock, the region between $66 and $69 should provide strong support as $68 is the resistance turned support of the ascending triangle that broke upwards in mid-May.

About Kim Chua, PrimeXBT Market Analyst:

Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.