The bullish rally in the oil market! | 29 May 2020

The bullish rally in the oil market!


#WTI:


More than 2.2 million b/d of US oil production has been shut in response to low prices and weak demand, US Energy Secretary Dan Brouillette said. This is a positive signal for oil prices! US Energy Information Administration data released Wednesday showed US production at 11.5 million b/d last week, down 1.6 million b/d from March 13. SPR stocks grew 1.9 million barrels last week to 641.6 million barrels, for a total addition of 6.7 million barrels since April 17, according to EIA data. With current authorized capacity of 714 million barrels, the stockpile has room for another 72.4 million barrels.


Trading recommendation: Buy 32.20 and take profit 35.00


The bullish rally in the oil market!


XAUUSD:


Gold was in demand during as simmering U.S.-China tensions flared up, prompting investors to seek the traditional safe haven. The latest source of Sino-U.S. disagreement came after Beijing moved to impose a new security law on Hong Kong after last year's pro-democracy unrest. The decision drew a warning from President Donald Trump that Washington would react "very strongly" against the attempt to gain more control over the former British colony. We are expecting the development of a bullish rally in the gold market in the new five-day period!


Trading recommendation: Buy 1717 and take profit 1754.


The bullish rally in the oil market!


#SP500:


Geopolitical tensions between the United States and China are having a negative impact on the American stock market. China signaled it would move forward with laws that would take aim at anti government protests and other dissent in Hong Kong. The freedoms that have distinguished Hong Kong from the mainland, like an unfettered judiciary and freedom of assembly have helped the former British colony prosper as a global city of commerce and capital. But the proposal raised the possibility that the Beijing government would damage the “one country, two systems” policy that has ensured such liberties since the territory was reclaimed by China.


Trading recommendation: range 2910 -2995.

 

David Johnson
Analyst of «FreshForex» company
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