Alright everyone, lets get ready for the new week.
Phase one of the trade deal between US and China got signed last week. potentially, this deal can increase the purchases of China from US in energy sector (oil and gas) and also provide legal grounds for US to stop china from buying Iranian oil (this will push the price of oil higher)
Also, over the weekend, there were violent protests all over middle east, specially in Lebanon
And the central government of Libya has decreased their oil production by %90 and the production in its biggest oil refinery (Al-Sharare) has been stopped by the protestors completely. (this will also push the price of oil higher)
WTI crude (USOIL) managed to hold above the 57 (my PRZ area was 57.90-58.30) and it has made a small jump from the topline of PRZ area, so I think the middle east tensions will at least help the correction to the upside climb above 60 again (and potentially till 63 or beyond depending on market reaction).
if the support holds here, oil will continue the uptrend for now. but still, the reason for the fall is the amount of ready supply for the market which made sellers confident in their shorts, but with the tensions raising again and the phase one deal which can potentially force China to stop buying Iranian crude (like India did) its likely for the oil market to stay bullish.
Also, The Feds continued buying treasury bonds last week (about 20 billion just last week) and they are likely to keep this rate till the end of February.
this will weaken the US Dollar and can push gold prices higher as well.
American banks are closed for MLK day, so be careful about your trading during this holiday.
Don't forget to sign up for my bot (@Linorth_bot) to get my signals. (its a paid service, $20/month)
Good luck out there
Phase one of the trade deal between US and China got signed last week. potentially, this deal can increase the purchases of China from US in energy sector (oil and gas) and also provide legal grounds for US to stop china from buying Iranian oil (this will push the price of oil higher)
Also, over the weekend, there were violent protests all over middle east, specially in Lebanon
And the central government of Libya has decreased their oil production by %90 and the production in its biggest oil refinery (Al-Sharare) has been stopped by the protestors completely. (this will also push the price of oil higher)
WTI crude (USOIL) managed to hold above the 57 (my PRZ area was 57.90-58.30) and it has made a small jump from the topline of PRZ area, so I think the middle east tensions will at least help the correction to the upside climb above 60 again (and potentially till 63 or beyond depending on market reaction).
if the support holds here, oil will continue the uptrend for now. but still, the reason for the fall is the amount of ready supply for the market which made sellers confident in their shorts, but with the tensions raising again and the phase one deal which can potentially force China to stop buying Iranian crude (like India did) its likely for the oil market to stay bullish.
Also, The Feds continued buying treasury bonds last week (about 20 billion just last week) and they are likely to keep this rate till the end of February.
this will weaken the US Dollar and can push gold prices higher as well.
American banks are closed for MLK day, so be careful about your trading during this holiday.
Don't forget to sign up for my bot (@Linorth_bot) to get my signals. (its a paid service, $20/month)
Good luck out there
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