ACT Markets > Blog > Uncategorized > Price of Crude Oil Recovers Gain, US Gross Domestic Product Stronger by 2.9%

Price of Crude Oil Recovers Gain, US Gross Domestic Product Stronger by 2.9%

December 1, 2022 Uncategorized

Key Take-Aways

  • Above the $78 resistance, the price of crude oil began to rise again.
  • On the 4-hours chart, it broke over a significant bearish trend line that had resistance at $78.75.
  • Above the $1,725 support, gold price entered a consolidation phase.
  • In November 2022, the US ISM Manufacturing Index could fall from 50.2 to 49.8.

Technical Analysis of Crude Oil

From the $74.00 support region in relation to the US dollar, the price of crude oil began a new upward trend. Price increased in velocity and traded above the $78.00 resistance region

On the XTI/USD 4-hours chart, there was a break over a significant negative trend line with resistance located close to $78.75. A move over the $80.00 resistance, the 100 simple moving average (red, 4-hours), and the 200 simple moving average became possible as a result (green, 4-hours).

Price even crossed above the $80.31 swing high and tested the 1.236 Fib extension level of the decline from the $73.95 low to $80.31 swing high.

On the plus side, the price may encounter sellers close to the $82.45 region. The price may test $85.00 resistance above the next significant resistance, which is located close to $83.00.

Another steady climb in the upcoming sessions might be possible with a clean break above the $85.00 resistance. There is now an immediate support close to $80.00 region.

The $79.40 zone is the next significant support. If there are any additional losses, the $78.50 support area or the 100 simple moving average may need to be tested (red, 4-hours).

Looking at the price of gold, it continued to rise steadily above the $1,720 and $1,725 resistance levels. It is now preserving gains and looking for additional gains.

Economic News To Trade Today

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  • US initial jobless claims are expected to be 235K, down from 240K the prior week.
  • US ISM Manufacturing Index for November 2022 is expected to be 49.8, down from 50.2 previous.
  • The US Manufacturing PMI for November 2022 is expected to be 47.6, up from 47.6 previous.
  • The Euro Zone Manufacturing PMI for November 2022 is expected to be 47.3, up from 47.3 in the prior month.
  • The UK Manufacturing PMI for November 2022 is forecasted to be 46.2 vs. 46.2 in the previous month.
Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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