Tuesday, November 5, 2019

USOIL

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Fundamental Highlights

WTI closed half a point higher yesterday at $56.49 after reaching a high of $57.39 on rising hopes that the US and China will sign the phase 1 of a trade deal this month as President Xi vows commitment to global trading order in return for a rollback on the US imposed Tariffs. Negotiators asked the Trump administration to eliminate tariffs on about $110 billion in goods that were imposed in September and lower the 25% tariff rate on about $250 billion of goods that began last year, in return for a Chinese commitment to respect US intellectual property and decrease trade surplus.

Technical Analysis

Bullish momentum on WTI as both resistance levels were tested in yesterday’s session while prices retraced and registered a daily close below our R1 at $56.49 after testing the 200 SMA (which also coincides with R2 at $57.21) . A breach of R1 at 56.70 will push prices higher in a second attempt to test the 200 SMA and R2 at $57.21, while a failure to do so will have prices retrace to S1 at 56.22

Support: 56.22/ 55.85
Resistance: 56.70/ 57.21/ 58.19

Chart (H1)
OIL