 Good morning and welcome to the new training week last week We had this big news from OPEC actually agreeing on capping their oil production the price of Brent crude oil and West Texas Intermediate the US crude Sword is strong it's had a quite a bit of a rally and Also had some follow-on buying yesterday Interestingly if you look at the weekly chart where one candle is one week or if you use a line chart You can start like in autumn of 2015 and go all the way Up to today. There is some pattern that you can find which Actually is Usually found at the bottom of a downtrend and that is an inverted head and shoulders pattern and that pattern Could be triggered or activated and technical analysts actually then would be able to project a price target for Brent crude oil and WTI of 78 US dollars per barrel. So there's quite some upside from a technical perspective but The inverted head and shoulders pattern needs to be activated or triggered and that is happening when print crude when the print cash index Is going above 52 dollars? So if print rises above 52 dollars 53 54 and closes there on a daily basis or closes there on a weekly basis Which would be the even more even stronger signal then this bottom information would be activated with a technical price target at 78 dollars The other scenario that could happen is that print crude rises to 52 and then bounces off strongly off of that resistance That would be a Repetition of what we've actually seen in the past weeks every time Print rose to to that area to that area of resistance to that neckline of the inverted head and shoulders pattern There were a lot of sellers coming into the market interestingly opaque agreed now to cap production which Yeah, we'll remain it will remain to be seen in the in the coming weeks and months if the opaque discipline is back Because everyone within the OPEC every member state has quarters and those quarters are kept now So we will see in the next weeks and months if those quarters are really If if every member state is following the quarters or if they overproduce If they overproduce one would assume that would be bearish for the price of oil, but there will be verbal interventions then from the OPEC from the Saudis from everyone within the OPEC to actually Motivate everyone to produce within the quarters against that would be again some psychological intervention and some succession to that series of Psychological interventions that we had in the oil markets as of late and in the past weeks and months that has helped to Like a print out and push out short sellers out of the market so that effect should not be underestimated It's really interesting to see how well the Russians and Saudis are managing to keep Speculation at bay and the Saudis which are having big problems and large problems problems with their banking sectors the credit default swaps for the for the banking sector in Saudi Arabia and our skyrocketing actually even with With the stronger oil prices that we had in the past days. They are going up and up and up The equity prices of Saudi Arabian banks are at an all-time low that is all because the Saudi government actually Somehow everybody feels that they will come into some sort of financial problems The central bank in Saudi Arabia actually intervened to provide banks with liquidity Because the Saudi government pulled out a lot of money out of the banks which forced them into some liquidity crisis so The decision that we had in the past week to cap production has not really been Some sort of let's do this. No problem. They are not living in freedom They are somehow forced to do that And so let's see how the discipline will be within the OPEC to really follow the OPEC Quarter caps and production caps that would be interesting to see for the time being the price of oil Is really interesting around the price tag of 52 dollars. Will there be a resistance? Will it bounce lower off of that or will it break above that which would be a buy signal? Technically with a target of 78