Fundamental analytics

Brent: On Tuesday oil market is being traded in the green


Oil market is being traded in the green Tuesday. From the session opening Brent rose almost 0,5%, WTI gained 0,4%. Quotes got support from the situation on stock markets. Main indices are being traded in the green pointing to a higher investors’ interest in dicey assets including oil. Investors’ optimism is still linked to the expectations of signing interim trade agreement between USA and China. Today investors will closely monitor the speech of Donald Trump at the New York Economic Club. Caution ruled in other markets ahead of this speech by Trump later in the day in case there was any new word on a deal. Comments on the progress of trade talks might produce tangible volatility on the market. Some analysts expect that remarks may send positive signal to markets.

We should note that this week industry data by API will be published on Wednesday, not on Tuesday as usually. Energy Information Administration report will be delivered Thursday respectively. Therefore in the first part of the week geopolitical news and situation on stock markets will have prevailing influence on the market.

On the chart 60.00-62.50 range is still actual. Now the price moves towards upper boundary of the mentioned sideways channel. We can reckon on continuation of bullish movement only after break of the 62.50 level.

Resistance levels:  62.50, 64.00, 65.00;

Support levels: 60.00, 59.00, 57.00.

Main scenario: Decline towards 60.00.

Alternative scenario: Consolidation in the middle of 60.00-62.50 range.

Moderately-positive sentiment is set on the market. On the chart sideways channel 60.00-62.50 is still on the cards, therefore for intraday trading  we consider shorts from the 62.50 level.

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