Saudi Aramco IPO positive news for oil market! | 15 November 2019

Saudi Aramco IPO positive news for oil market!


#BRENT:


We are expecting the bullish rally in the oil market to continue. Owned and operated by the kingdom of Saudi Arabia, the oil giant’s IPO is expected to be the largest in history. The IPO will take place on December 5. Saudi Arabia will maintain high prices for hydrocarbons. This is a positive factor for the oil market! High geopolitical tensions in the Persian Gulf will support oil quotes. Security forces fired tear gas at anti-government protesters in Baghdad on Sunday injuring at least 22 people. One person died in hospital of wounds sustained in clashes the previous day.


Trading recommendation: Buy 61.44 and take profit 63.10.


Saudi Aramco IPO positive news for oil market!


#SP500:


Good and bad news for the U.S. stock market. The good news is the Federal Reserve's loose monetary policy. The Federal Reserve buys short-term Treasury bonds every trading day, which helps lower interest rates in the debt market. This factor has a positive impact on the value of corporate securities. The bad news is Donald Trump's comments on the United States-China trade talks. Donald Trump said on Friday that he would not fully roll back tariffs, but that a deal could be signed with Chinese President Xi Jinping in Iowa by the end of the month, adding that China wants to make a deal. “They’d like to have a rollback, I haven’t agreed to anything,” Trump told reporters. “China would like to get somewhat of a rollback - not a complete rollback, because they know I won’t do it.”


Trading recommendation: range 3066 -3101.


Saudi Aramco IPO positive news for oil market!


#Chesapeake:


We are expecting a bearish rally this week. Chesapeake said it would have to cut back on spending, and the addition of language questioning whether the company can continue as a going concern suggested that the energy player might be nearing the end of its rope. If conditions in the industry don't improve soon, then Chesapeake might find itself having to do a reverse split or even delisting entirely from the stock exchange. This is negative news that may cause investors to increase short positions on the company's shares.


Trading recommendation: Sell 1.00 and take profit 0.90


 


TRADE OILS WITHOUT SWAPS!

David Johnson
Analyst of «FreshForex» company
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