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By: Ahura Chalki
Chinese PPI or OPEC output cuts?
So far from today’s realized data Chinese negative Product Price index was lower than expected for the third consecutive month. Following these negative data, even if there were some other positive data like Japanese GDP and US job reports, which reported yesterday and overnight, there are reports about expectations of more OPEC cuts support the price for now (Reuters). For today British GDP and US PPI and US Baker Hughes will be in focus.
From the technical side, the H1 chart shows side movement for Oil prices, as RSI moves on 50-level for the past two days, however stable moving above 52.50 still can be the positive sign for more bullish and vice-versa. Stochastic also has a correction signal by moving in the 20-level area with crossing above the signal line with the main stochastic line.
Pivot point: 52.60
Resistance levels: 53.40 / 53.76
Support levels: 52.24 / 51.44
The expected trading range for today is between 51.44 support and 53.76 resistance.
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