The positive signal for the U.S. stock market | 08 May 2020

The positive signal for the U.S. stock market


#WTI:


We are expecting the development of a bullish rally in the oil market in the new five-day period. The output cuts combined with the loosening of business restrictions in some U.S. states and cities around the world were expected to ease the global fuel glut and pressure on storage tanks, helping to drive prices. U.S drillers cut 53 oil rigs in the week to May 1, bringing the total count down to 325, the lowest since June 2016, energy services firm Baker Hughes said. Oil and gas companies are reducing drilling activity. This is a positive signal for oil prices!


Trading recommendation: Buy 19.00 and take profit 21.50


The positive signal for the U.S. stock market


#SP500:


Federal Reserve will continue to purchase Treasury securities and agency residential and commercial mortgage-backed securities in the amounts needed to support smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions. Federal Reserve Bank of New York will continue to offer large-scale overnight and term repurchase agreement operations. The Board of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on required and excess reserve balances at 0.10 percent. This is a positive signal for the U.S. stock market!


Trading recommendation: Buy 2800 and take profit 2884.


The positive signal for the U.S. stock market


XAUUSD:


High geopolitical tensions will have a positive impact on the price of gold. U.S. Secretary of State Mike Pompeo said there was "a significant amount of evidence" that the new coronavirus COVID-19 emerged from a Chinese laboratory, ratcheting up tensions with the country after last week's warning from President Donald Trump of retaliatory measures against China over the pandemic. U.S. President Donald Trump said raising tariffs on China is “certainly an option” as he accused China of mishandling the spread of the COVID-19 pandemic.


Trading recommendation: Buy 1695 and take profit 1740

 

David Johnson
Analyst of «FreshForex» company
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