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Old 22-02-2019, 10:22
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Default Re: Tifia Daily Market Analytics

WTI: long positions are preferred
02/22/2019

Despite another increase in oil reserves in the US storages, oil prices continue to grow. According to the Energy Information Administration (EIA), the US Department of Energy, oil reserves in storage last week rose by 3.672 million barrels (the forecast was +3.080 million barrels). At the same time, oil production in the United States grew by 100,000 barrels to a record 12 million barrels per day. Thus, oil reserves in the United States rose to 455 million barrels, the highest level since November 17, 2017.
The growth of oil prices contributes to a number of fundamental factors. Among them - the recovery of stock markets, investor optimism regarding the positive outcome of trade negotiations between the US and China, expectations of a further reduction in production at OPEC, increased risks of disruptions in oil supplies from Venezuela.
On Friday, oil market participants will be waiting for the publication (at 18:00 GMT) of a weekly report from the American oilfield service company Baker Hughes on the number of active oil drilling rigs in the United States. Their number increased in the previous week and currently stands at 857 units, although this is below the maximum of 887 units reached at the end of 2018.
At the moment, oil prices are recovering after falling in the 4th quarter of 2018 (oil prices in the end of December hit bottom near the mark of 42.00 dollars per barrel of WTI crude oil). Rising oil prices create an incentive for American oil companies to increase production, which, in turn, is a deterrent to rising oil prices. The increase in the number of drilling rigs is a negative factor for oil prices and creates prerequisites for the subsequent decline in oil prices.
However, in the current situation, positive fundamental factors outweigh the negative ones, which creates prerequisites for a further increase in oil prices.
*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

To date, the price has reached the zone of important levels: resistance level 57.80 (EMA144 on the daily chart, Fibonacci 38.2% of the correction to the growth wave, which began in February 2016 with the support level near the level of 27.30), 59.00 (EMA200 on the daily chart) and support level 56.50 (EMA200 on the weekly chart).
The indicators OsMA and Stochastic on the weekly and daily charts recommend long positions.
Immediate growth targets are resistance levels 57.80, 59.00.
In the case of a breakdown of the short-term support level of 55.50 (ЕМА200 on the 1-hour chart), the price will again go into the downward channel on the daily chart.
This will return WTI oil prices to a bearish trend that began in October, with a target at the 42.20 support level (2017 and 2018 lows).
In the current situation, long positions are preferred.
Support levels: 56.50, 55.50, 53.80, 52.00, 50.25, 49.00, 46.00, 42.20
Resistance Levels: 57.80, 59.00, 60.00

Trading recommendations

Sell Stop 55.40. Stop Loss 57.10. Take-Profit 53.80, 52.00, 50.25, 49.00, 46.00, 42.20
Buy Stop 57.10. Stop Loss 55.40. Take-Profit 57.80, 59.00, 60.00



*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com
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