Fundamental analytics

Brent: Oil is being traded in a tight range

Brent

Crude oil is being traded down amid persisting uncertainty regarding the prospects of global economy development and energy demand. Investors took negatively the message of WTO saying that China is seeking for retaliation against USA in response on american tariffs applied in 2007-2012. At the same time U.S. President and representatives of Chinese Ministry of Foreign Affairs have noted a progress in trade negotiations a day before. On Monday Donald Trump said efforts to end a U.S. trade dispute with China were going well as negotiators from both sides work to nail down a Phase 1 trade deal text for their leaders to sign next month when they meet at November’s APEC summit.

Situation on stock markets can be a support factor for the market as major indices maintain mostly positive movement vector reflecting increased investor’s interest in dicey and highly profitable assets.

Release of weekly API report is expected in USA today.

On the chart situation over the past 24 hours remained almost unchanged. Trading still goes in a horizontal range 57.00-60.00. Right now the price stands in the middle of the range, therefore we have virtually equal probability of movement to the upside as well as to the downside.

Resistance levels: 60.00, 61.50, 64.00;

Support levels: 57.00, 55.55, 55.00.

Main scenario: Growth towards 60.60.

Alternative scenario: Break of the 58.20 level and decline towards 57.00.

Neutral sentiment is maintained on the market. Sideways channel 57.00-60.00 continues to develop on the chart. For intraday trading we can consider long-positions as well as short positions for this asset from the boundaries of price channel.

 

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