2021-01-11 • Updated
WTI oil surged above $52.00 for the first time since February. Why? Firstly, Joe Biden pledged to inject trillions of dollars into the US economy to fight against the Covid-19 effect. The market reaction after the announcement offered a boost to crude oil. Secondly, Saudi Arabia pledged to make deeper oil output cuts. Finally, the recent vaccine breakthroughs improved the sentiment and added optimism for a recovery in oil demand.
Crude oil has stopped after last week’s strong rally as investors are assessing the increased demand for the US dollar. A stronger greenback has made raw materials as crude oil more expensive. Therefore, oil prices plummeted.
When WTI oil closed above $52.00, the 14-period RSI broke through the 70 mark, signaling the price entered the overbought zone. In addition, a bearish crossover happened – the MACD indicator started declining and crossed the signal line to the downside. As a result, WTI oil corrected down. If WTI oil dropped below Friday’s low of $51.00, the way down to the next support of $50.00 will be clear. On the flip side, the move above the resistance of $52.70 will push oil to the high of February 20 at $54.00.
To trade WTI with FBS, you need WTI-21G, which expires January 19.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
