Oil Technical Analysis: Risk of OPEC dropping the ball

Oil prices get support from the fact that traders expect OPEC to do whatever is needed to maintain the current price levels. That of course is a bit of a gamble as the current production cuts among OPEC countries are voluntary, and can only be confirmed after real export numbers are published.. Should OPEC really want to matter, not only a prolonging but a deepening further of these production cuts could be needed. 

Oil bulls are focusing on the double top near $79.66, ahead of $80.00. Once through that area, quite a large room opens up towards $86.90, which would mean a nearly 10% gain. Just ahead of $90, $89.64 could stand in the way of heading towards $100.00.

On the downside, the 200-day Simple Moving average (SMA) near $77.72 is the first point of contact to provide some support. Quite close following suit are the 100-day and the 55-day SMAs near $76.25 and $74.83, respectively. Add the pivotal level near $75.27, and it looks like the downside is very limited and well-equipped to resist the selling pressure