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By: Ahura Chalki
Preparing for new rally or buyers still, have to wait?
The Oil market usually is driven by demand and supply, economic events as well as geopolitical news. The latest rally has seen at the beginning of the week, by the risk-off situation after rising the tensions between Iran and the US, which with calming of the dame tensions, WTI also lost all its gain to move the same level of before that. The new level of real demand of 2020 also will know probably by the end of the first month, when we have the fully December data and some of the January data on the table. However, signing the trade deal and OPEC+ supply cuts are on the other side of the story, which can change everything. About the OPEC+ plan, we already know, so, here we have the Phase-One of the trade deal, which if it will be signed on 15, January, as it is the plan and President Trump also earlier today mentioned that in his interview with “Ohio” state TV, can move the market higher, otherwise, for now, it seems bears have the full control.
WTI Technical Analysis:
Technical indicators are in favor of bears. Candles in the daily chart, totally forming between middle and lower bands of BB, signaling of more bearish. $58.70, the lower band of BB and then $57.80 200-DMA are next key supports while closing above 20-SMA at 60.80 will change the trend into a bullish mood.
Pivot point: 59.40
Resistance levels: 60.27 / 61.00
Support levels: 58.60 / 57.78
Today, the expected trading range is between 57.78 support and 61.00 resistance.
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