Thursday, June 6, 2019

USOIL - 06 June 2019


Fundamental Highlights

Having slumped to the lowest since mid-January, WTI recovers some of its latest losses to trade just below the $52 level during today's early session. While the US Dollar's weakness is likely the main reason behind the black gold’s recent up-moves, positive comments relating to the global growth from the International Monetary Fund’s leader Christine Lagarde also played its part in calling buyers back at home. Looking forward, the final decision on another chapter of global trade wars, between the US and Mexico, will be closely followed during the day as lawmakers of both the economies are to meet for one more time before the fresh tariffs levy on Mexican products. Also on the investors’ radar will be developments surrounding the US-China relations that has gone sour recently.

Technical Analysis

Crude prices are edging higher this morning after slumping to the lowest level since beginning of the year amid multiple divergences between the price and the momentum. The price is currently is currently hovering around the $51.83 support level with an increasing bullish momentum. We will be focusing on the upside, especially the $53.26 resistance level.

Support: 51.83 / 50.87
Resistance: 52.5 / 53.26

Chart (H4)