Crude Oil analysis – 2 Aug 2019

 

By: Ahura Chalki

Trade war against of Cold war!

Oil rebounds itself after losing the grand by new US tariffs for Chinese products, starting from September. Mr. Trump says china did not buy enough Crops from the US. These new tariffs which is 10% and for almost 300B USD, made the financial market to have red numbers for hours. Concerns about the new wave of a trade war and its effect on Global Economy growth send Oil price deeper, to try 2 months low at 53.58 overnight. During the Asian season, a correction back to the market and now it is trading above $55. Chine’s respond can send it even deeper.

From the technical side, price meets its SMA14 at $55.06, where it is just returned above Parabolic SAR. RSI, on the other hand, moves under 50-level in the H1 chart to remains of more bearish, however Stochastic returned down from above 80-level, but since we are in a downtrend, it is not the signal of a trend reversal.

 

Pivot point: 55.14

Resistance levels: 56.60 / 59.41

Support levels: 52.33 / 50.87

The expected trading range for today is between 52.33 support and 56.60 resistance.


Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.

 

Related post