The bullish rally in the oil market | 22 November 2019

The bullish rally in the oil market


#WTI:


We are expecting the bullish rally to continue this week. The positive trade talks between the United States and China contribute to the growth of oil prices. White House economic adviser Larry Kudlow said negotiations between the two countries were coming down to the final stages. Washington and Beijing can sign a trade agreement by December 15. Donald Trump at the end of the summer said that he was ready to increase tariffs from December 15, if there is no trade deal. The long-awaited IPO of Saudi Aramco will provide additional support to the oil market.


Trading recommendation: Buy 57.41 and take profit 59.16.


The bullish rally in the oil market


#SP500:


The world's leading Central Banks print money, which has a positive impact on the U.S. stock market. The Federal Reserve has cut interest rates three times this year. This factor will provide strong support to the U.S. stock market, as low interest rates in the money and debt markets force investors to actively buy corporate securities. Rising stocks outnumbered declining ones on the New York Stock Exchange by 1762 to 1041 and 114 ended unchanged. The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 7.66% to 12.05 a new 6-months low. This is a positive signal for investors.


Trading recommendation: Buy 3102 and take profit 3137.


The bullish rally in the oil market


XAUUSD:


We are expecting a bearish trend. Positive trade talks between Washington and Beijing are forcing investors to sell precious metals. Investors increase long positions on "high-yield" assets and close long positions on "low-yield" assets. The Japanese yen and gold are the two most popular "low-yield" assets in the world. State-owned Saudi Aramco, the world's most profitable company, is set to launch a share sale process on Nov. 17, aiming to raise $20 billion-$40 billion in a domestic initial public offering in early December. This is IPO will force investors to increase sales of precious metals.


Trading recommendation: Sell 1471 and take profit 1450.78


 


TRADE OILS WITHOUT SWAPS!

 

David Johnson
Analyst of «FreshForex» company
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