Asian markets went higher Thursday after notice that the US and China will resume trade in early next month. Investors were also encouraged by global developments, including British lawmakers who wanted a less complicated exit from the EU and reduced political tensions in Hong Kong.
Oil prices rose significantly on Wednesday, receiving support from strong Chinese macroeconomic publications, which contributed to some reduction in tensions regarding a further slowdown in the global economy. Caixin Services PMI increased from 51.6 to 52.1 points. At the beginning of the week, China also reported an increase in activity in the manufacturing sector. Caixin Manufacturing PMI strengthened from 49.9 to 50.4 points, returning to growth.
The report of the American Petroleum Institute reflected the growth of oil reserves for the week as of August 30 by 0.401 million barrels after a record decrease of 11.100 million barrels for the previous period. On Thursday, investors expect similar statistics from the US Department of Energy. According to current forecasts, oil reserves will show a decrease of 2.488 million barrels.
Trading tips
To open long positions, one can rely on the breakout of 61.51. Take profit — 64.00 or 64.73. Stop loss — 60.00.
The rebound from 61.51 as from resistance with the subsequent breakdown of 60.64 or 60.30 can become a signal for new sales with target at 58.28 or 57.66. Stop loss — 62.00.
Implementation time: 2-3 days.
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 61.55 |
| Take Profit | 64.00, 64.73 |
| Stop Loss | 60.00 |
| Key Levels | 58.28, 59.16, 60.00, 60.64, 61.51, 62.67, 64.00, 64.73 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 60.60, 60.25 |
| Take Profit | 58.28, 57.66 |
| Stop Loss | 62.00 |
| Key Levels | 58.28, 59.16, 60.00, 60.64, 61.51, 62.67, 64.00, 64.73 |
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range is slightly expanding from above, not keeping pace with the surge in “bullish” sentiment on September 4. MACD indicator is growing, keeping quite stable buy signal (located above the signal line). The indicator may also consolidate above the zero level. Stochastic has been showing oscillatory dynamics for a long time and does not go into its extreme zones indicating overbought and oversold instrument.
Technical indicators do not contradict the further development of the uptrend in the short and/or ultra-short term.
Resistance levels: 61.51, 62.67, 64.00, 64.73.
Support levels: 60.64, 60.00, 59.16, 58.28.
