The bullish rally in the oil market! | 24 April 2020

#WTI:

Baker Hughes data showed oil rigs down to 438 this week from 504 last week, down 13%. Oil rigs are down by a total 245 since the week ended March 13, when there were 638 rigs. That constitutes a drop of more than 35%. ConocoPhillips to voluntarily curtail 225,000 gross barrels of oil per day. An additional reduction in 2020 operating plan capital expenditures of $1.6 billion, bringing the current estimate to $4.3 billion. The company also announced it will elect to curtail production in Canada and the Lower 48 regions until market conditions improve. This is a positive signal for the oil market!

Trading recommendation: Buy 23.00 and take profit 25.88

XAUUSD:

We are expecting a bearish rally in the precious metals market in the new five-day period. Spot gold, settled down $30, or almost 2%, at $1,684.69 per ounce. Just on Tuesday April 14 spot gold hit a seven-year high of $1,747.61, after a gain of $155, or 10%, since end-March. It was a powerful bullish rally, but now the trend has changed. Investors are increasing their short positions in the precious metals market. The White House unveiled late on Thursday April 14 guidelines that governors of the 50 U.S. states could use in reopening businesses locked down for four weeks now in an attempt to control the Covid-19 outbreak. This is a negative signal for gold!

Trading recommendation: Sell 1690 and take profit 1660

#Amazon:

Amazon said on it would hire 80,000 more workers at its stores and distribution centers to meet a surge in demand for groceries and household essentials from consumers forced to stay home during the outbreak. This is positive news for the company's shares. The increase in sales volume will have a positive impact on the business capitalization. We are seeing an increase in the volume of online trading. The United States has by far the world's largest number of confirmed coronavirus cases, with more than 740,000. The U.S. tally of lives lost to COVID-19 has also soared to more than 41,000. New York state accounts for nearly half those deaths.

Trading recommendation: Buy 2344 and take profit 2400