WTI Climbs Ahead of the OPEC Meeting

By -

The Feb-Mar Oil advance from 26.05 to 41.90 inflicted important and consequential damage to the intermediate-term downtrend from the June 2014 high at 107.73 when the price structure thrust above 35.00 on April 4.

Weakness off of the March high successfully tested the April 4 breakout level last week, after which Oil pivoted to the upside from 35.24 to last Friday’s (Apr 8) close at 39.66.

Renewed strength comes amid ongoing debate about still-massive excess supply, still-worrisome over-production, and doubts about the resolve of OPEC and Non-OPEC producers to freeze output at the forthcoming Doha Meeting on April 17.

The promising technical set-up heading into the Doha Meeting– that projects continued strength into the 42-45 next target zone– belies an otherwise bearish, underlying fundamental backdrop.

Are we witnessing a classic case of technical price action forecasting a slower, but impending shift in the underlying supply-demand factors for Oil?

Right now, the answer would appear to be yes.

Ignore the whisper of the technicals at your own peril.

full-Li6h5nSG6pAzTibt6jnlCOriginally published at MPTrader.com.