The bullish rally in the oil market | 05 июня 2020

#WTI:

The latest survey of oil drilling patches by industry firm Baker Hughes on Friday showed a reduction of only 15 oil rigs this week, versus drops more than 60 per week during several weeks over 2-1/2 months. While the oil rig count is down 68% as a whole since the week ended March 13. This is a positive signal for oil quotes! Oil prices have rebounded strongly this month, boosted by a combination of the Organization of the Petroleum Exporting Countries and producers including Russia, a group known as OPEC+, slashing their output and perceived increased demand as the global economy starts reopening from the shuttering caused by the COVID-19 outbreak.

Trading recommendation: Buy 34.55 and take profit 36.50

XAUUSD:

Federal Reserve Chairman Jerome Powell said Friday that while he was a bit less tense about the economy, he is still concerned about a potential "second wave" of the COVID-19 outbreak. Fed Balance Sheet Can't Go to Infinity Jerome Powell said. FOMC began purchasing exchange-traded funds that provide broad exposure to U.S. corporate bond markets. The Fed said the "preponderance" of those holdings would be in funds whose primary investment objective was in the market for debts with investment-grade ratings. This is a positive signal for gold!

Trading recommendation: Buy 1730 and take profit 1754.

#SP500:

U.S. President Donald Trump said on Friday he was directing his administration to begin the process of eliminating special treatment for Hong Kong in response to China plans to impose new security legislation in the territory. He said its move against Hong Kong was a tragedy for the people of Hong Kong, China and the world. Ahead of Trump's speech, many were concerns the U.S. could impose sanctions China and risk retaliation that could escalate tensions and potentially undo the trade truce agreed earlier this year. This is a positive signal for the stock market as Trump stopped short of any trade sanctions.

Trading recommendation: Buy 3022 and take profit 3088.