Crude Oil analysis – 7 Oct 2019

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By: Ahura Chalki

Oil hopes on Economic Giants!

Oil prices ended the last trading week, with almost $2 correction from its two months low at $50.90, seen on October 3. Oil price felt back after Studies announced that they are fully back in the market by repairing the damage caused by drone attacks on their refineries. The question is not that if the real attacks and what Studies were trying to sell in Medias were the same or not, however, they announced that, they are fully back in the market after just a few weeks, which is not looks like a real, in either way. The week ahead is very important, since the two largest economies of the globe are sitting on the table to solve their ongoing trade war with peaceful negotiation. Both sides and following them, the world’s economy need positive results out of this meeting, which can help the messed up situation of the global economy and brings the hopes back into the market. After all negative economic data from almost all the biggest economies in the world, it can be the only hope of the market. The week ahead, eyes will be on trade talks and any related news from that. On the other hand, while some investors were hoping for OPEC’s reaction on that, Russian Energy Minister Alexander Novak said “Of course, demand is affected by the status of the global economy, and the economy is slowing down,” and he added: “There are no crisis events that call for an emergency meeting.” (Bloomberg)

Technical analysis:

At the H4 chart, technical indicators having mixed signals. While Parabolic SAR has a clear uptrend signal, RSI still moving under 50-level and cannot confirm that, same as EMA crossing strategy, which is supporting the bears, against candlestick pattern which is supporting bulls, with forming second bullish candle in Heiken Ashi Chart.

Pivot Point: 52.75

Resistance levels: 53.55 / 54.04

Support levels: 52.26 / 51.45

Today the expected trading range is between 51.45 support and 54.04 resistance.


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