ZuluTrade Blog

A potential USoil SetUP

Market View | Monday, May 6, 2019 5:17 PM GMT

A potentially rewarding bullish scenario could materialize for US oil.

On 18 April the 50 Day Moving Average has crossed north the 200 Day Moving Average (golden cross). The cross level, as well as the current 200 Day Moving Average level could behave as resistance levels.

The bullish scenario could be considered busted, if US oil goes bellow the 57.70$ level.

Strengths of Oil:

  • the waivers that the USA was giving to countries buying Iranian oil have been waived on the 2nd of May. Now, the 2.7million barrels per day that Iran was producing are set to be lost from the global markets.
  • the 2H19 recovery scenario of global GDP is still valid

Weakness of Oil:

  • increasing US oil inventories.
  • Saudi Arabia and UAE are supposed to step up their production.
  • the recent deterioration of US-China trade talks, as it was revealed by President Trump’s tweet on Sunday, were an increase of tariffs was announced.



The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of Zulutrade and do not constitute an offer or invitation to anyone to invest or trade.

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