Oil sideways to bullish as per weekly and daily, wil it make till 55 ?
Technical: Crude oil trading at 52.55, trading at the daily pivot point waiting for clear direction. Trend remains sideways to bullish levels initially. Daily 8MA at 52.90 a break can check the next resistance at 54.90 or 20MA which could restrict the day. For the day one can add or hold buys till 52.20-30 levels for upside 53.30/53.60. Daily RSI stands at giving some hint to rebound technically. Overall buy on dips is advised for the day.
Fundamental: Crude dipped by 3.0 percent last week as escalating tension between US & China and surge in US Crude inventory levels weighed on the prices. As per reports from the U.S. Energy Information Administration (EIA), Crude inventories surged by 2.2 million barrels last week against the markets expectation of a decline of over 480,000 barrels. Moreover, the biggest consumer of Crude, China, imported crude around 40.23 million tonnes in May 2019 down from an all-time high of 43.73 million tonnes in April 2019. The fall in imports came following the drop in Iranian imports caused by U.S. sanctions and refinery maintenance coupled with falling domestic demand. The downtrend was limited after fresh supply concerns rose from the Middle East as two oil tankers were attacked in the gulf of Oman. This is the second attack on one of the world’s key shipping routes. Meanwhile, China’s officials stated that Washington’s attempt to force Beijing into a trade deal won’t be successful; they won’t come under any pressure from the United States which further escalated trade tension.
SUGGESTION: BUY OIL TILL 52.20 FOR 53.50/53.80 ELSE SELL BELOW 50.50 FOR 49/48.80