Thursday, October 3, 2019

USOIL

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Fundamental Highlights

Following its slump to more than three-week low, WTI bears catch a breath around $52.70 during today’s early session. The latest stop in price declines can be attributed to the reports from the Al Arabiya correspondent who claims to have heard several rocket attacks within Baghdad’s Green Zone in Iraq. Adding to the price momentum could be the US White House Adviser Peter Navarro’s comments that the unrest in Hong Kong is context for the US-China trade talks. Furthermore, The Guardian reports that the Iranian President Hassan Rouhani blames the US President Donald Trump for the failed US-Iran relations, which in turn risks escalation of the tension between the countries after recently silent days.The black gold plummeted as fears of the US recession and the price-negative news concerning the US-EU trade tussle joined higher than expected inventory number, 3.104M versus 1.567M forecast, by the Energy Information Administration.

Technical Analysis

Crude oil prices printed new lows during yesterday’s session at $52.15 per barrel before they found support by the $52.5 level. The price is currently hovering above the $52.5 level as the momentum swings in and out the oversold zone as we can see on the RSI chart. We will be focusing on the downside especially the $51.83 support level before we turn our attention towards a recovery in prices.

Support: 52.5/ 51.83
Resistance: 53.26/ 53.89
OIL