Binary crude oil options are in the short-term a positive move after breaking above the psychological level of $90 per barrel on Wednesday, for first time since May. Today the commodity extended its positive move, reaching $91. Binary traders should expect resistance around $92 considering oscillators overbought levels. However, a break above the latter is expected to push the price higher towards the key resistance at $93.60. On the opposite direction, the first support level is expected at $88.40, followed by $83.65.
On daily chart, the black gold is in upside correction after the sharp drop which started in May. The first resistance is seen at $92.10, followed by $95.65, which are 50.0% and 61.8% fibo retracements, respectively. On the downside, supports are expected around $83.50 and $81.50, before reaching the recent bottom at $77.28.
On a fundamental view, the Fed Chairman Bernanke increased the bullish sentiment among investors by ruling out a double dip recession during his testimony in front of House Financial Services Committee in the Congress. Additional support for the crude oil was caused by U.S. oil inventories decline which signaled for a recovering demand in the world’s largest consumer. The rising tension between Iran and the west is also in favor of the crude oil prices.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.