Oil market opens new trading week in the green reacting on situation in stock markets and messages saying, that Gibraltar court has ordered to release Iranian oil tanker Grace 1.
At the start of the week we can observe growth of demand for dicey assets on financial markets on the back of certain de-escalation of trade dispute between USA and China. On weekend the White House administration said, that most likely a decision about extension of the license for tech-giant Huawei will be taken shortly. It’s expected, that today Department of Commerce will announce extension of permission for business activity for 90 days. They also said in the White House, that they are all ready for the next round of negotiations.
Market was upbeat about news on holding of three-way meeting of South Korea, Japan and China to resolve current trade dissents. The last such gathering was three years ago.
Investors hope for improvements in the situation in international trading, that will facilitate growth of demand for energy.
On the chart signals in favor of further development of corrective upward movement still prevail. Buyers managed to keep the price above the 57.50 level and now we can expect break of local resistance at 59.20 and further development of bullish movement towards 62.30.
Resistance levels: 59.20, 60.70, 62.30;
Support levels: 57.50, 55.55, 55.00.
Main scenario: Break of resistance at 57.20 and growth towards 60.70.
Alternative scenario: Break of support at 57.50 and decline towards 55.00.
Positive sentiment prevails on the market locally. On the chart there are signals pointing to further development of upward movement. For intraday trading we give preference to long-positions seeking for entry points at the 58.00 level.