CRUDE OIL SUPPORTED ON MARKET SENTIMENT BY TARIFF CONSESSIONS

Dec 13,2019

Market Strategist

The black commodity was able to trade high, breaking this week’s choppy price action. The market got supported by the latest and long-expected announcement from Mr. Trump signing the agreement and giving the concession to the tariff on Chinese goods.

As commented last week, the price action got inside the symmetrical triangle above the 200 SMA, although trading quite choppy the first days of the week and yesterday long upper wick (shadow) candle caused by concern for the bulls, indicating buyers exhaustion near $59.70 could validate some sellers pressure. Stochastics is supporting such fatigue as the indicator is already in the overbought zone. MACD still in bullish bias altogether with the lighters MA, where 18 and 50 are again sloping up. With the upper trendline from the channel acting as resistance, there is still a clear path to higher levels around $61.

With oil prices still holding firm above its $59 handle despite the reported increase in US crude inventories, showing a surprise buildup in the crude oil stockpiles. The market has been able to recover and held grounds after finding more clarity regarding the advert on the tariff where market sentiment remains on the upside adding on with last week OPEC+ meeting optimism deepen production cut. However, the most needed balance between supply and demand haven’t been found, let’s buckle up until next Wednesday crude oil inventories report. Great weekend ahead, and be the market stay with us.

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CRUDE OIL SUPPORTED ON MARKET SENTIMENT BY TARIFF CONSESSIONS

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