Brent:The erosion of the 73.30$ thresholds is highly encouraging
Brent oil price fell 1.0% last week for a third week in a row, as the Turkish Lira crisis ignited the economic growth concerns. On Monday the oil price volatility stabilized, and the price inched up by 0.6%. From June high’s the price declines for six weeks out of seven.
Recent weakness attributed to the ongoing trade concerns and a dip in global economic growth, which leads to a drop-in demand from EM countries. Market participants more focusing on tumbling Turkish Lira and US-China Trade war headlines. Oil investors are hoping the better outcome from the next round of negotiations between US and China.
The oil price has surged more than 12% YTD, contrast down more than 7.0% past three months.
Technically speaking, the erosion of the 73.30$ thresholds is highly encouraging the bulls to initiate a more pronounced recovery to 74.00$ and 75.00$. Supports finds at 71.50$, 71.00$ and 70.00$.
Weekly supports find between around 70.00$. As we forecast last week, the price bound to consolidate between 70.00$-75.80$.
Oil price looks attractive between 70.50$-69.70$ levels. We see room for a short-term rally to 74.00$-74.50$ in case trade tensions reduces partially. The flip side, a two-day close below 200MAs could retrace further to 68.20$ and 66.00$
Recent weakness attributed to the ongoing trade concerns and a dip in global economic growth, which leads to a drop-in demand from EM countries. Market participants more focusing on tumbling Turkish Lira and US-China Trade war headlines. Oil investors are hoping the better outcome from the next round of negotiations between US and China.
The oil price has surged more than 12% YTD, contrast down more than 7.0% past three months.
Technically speaking, the erosion of the 73.30$ thresholds is highly encouraging the bulls to initiate a more pronounced recovery to 74.00$ and 75.00$. Supports finds at 71.50$, 71.00$ and 70.00$.
Weekly supports find between around 70.00$. As we forecast last week, the price bound to consolidate between 70.00$-75.80$.
Oil price looks attractive between 70.50$-69.70$ levels. We see room for a short-term rally to 74.00$-74.50$ in case trade tensions reduces partially. The flip side, a two-day close below 200MAs could retrace further to 68.20$ and 66.00$
Trade closed: target reached