By: Ahura Chalki
How trade tensions effect on Oil price!
Last week’s trade tensions and weak economic data from the EU and China reduced all hopes on better global economic growth. Manufacturing data as I mentioned last week bring the fears back to the market and investors. Even if OPEC+ announced that they agreed on continuing to reduce supply plan for more than expected duration, still we did not have a positive reaction from the market. There are two reasons for that, first is lower than expected economic growth, and second which is the main reason for totally Oil market price is huge US investments on the Oil industries during past two years especially, which caused to discover new wells and more produce. Same data which API weekly report overnight confirming as well by -5.000 M, comparing with -7.550 of last week. Today EIA report will be in focus, the expectation is -2.964M against of -12.788M of last week.
From the technical side, all technical indicators remain of more bearish. Price moves under SMA, Parabolic forming clearly above candles, RSI moves under 50-level and Stochastic also cutting down the signal line with the main line.
Pivot point: 57.03
Resistance levels: 57.97 / 60.36
Support levels: 54.64 / 53.69
The expected trading range for today is between 54.64 support and 57.97 resistance.
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