Daily Chart (Left)
- UKOil's candlesticks are positioned in their bullish channel between the upper blue and red bands.
- The red Bollinger bands are starting to move away from each other (black ellipses). This suggests a possible expansion in volatility.
- The daily RSI is on the bullish side of 50 (blue rectangle).
- If there is an expansion in volatility and the candlesticks remain in their bullish channel, with the RSI maintaining above 50, UKOil prices are likely to appreciate.
Hourly Chart (Right)
- Both UKOil's trend-following EMAs and its momentum-based stochastic have bullishly crossed up (red ellipses).
- This comes as prices has bounced off price support that overlays with the chart's central pivot (black horizontal line).
- If the EMAs develop angle and separation and the stochastic moves into the 80+ area (green rectangle) and holds, UKOil's hourly chart will have an underlying bullish momentum.
- On Monday, Saudi Arabia announced an extension of its 1 million bpd production cut for July into August.
- Russia announced a 500,000-bpd decline in exports in August.
- These add to the existing voluntary production cuts.
- The voluntary drops amount to just over 1.66 million barrels per day.
- OPEC+ initially announced these cuts in April.
- The coalition, during their meeting in June, agreed to extend these cuts until the end of 2024.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.