Oil continues higher on expectations of China easing, receding US stocks
- Crude prices getting a boost from declining US stocks.
- Hopes of Chinese cash boosting helping to spur markets forward.
Oil markets are continuing their trend higher, pushing WTI prices back over 52.00 per barrel in early Wednesday action as investors hope for continued declines in US stocks and expectations of further cuts from China to boost spending and avert a slowdown.
Expectations are rising that crude oil demand will continue to lift through 2019, and US crude oil stocks are also continuing to recede slightly, giving oil prices a chance to develop bullish momentum as OPEC production cuts continue forward, but expectations that China will cut taxes to avert further economic slowdown is seeing investors step further into risk assets, taking commodities higher and oil along with them. Fears of a global growth slowdown are centering around China, and markets are hoping for an aversion of a major crunch by the Chinese government, who have so far kept their responses to economic data to a minimum, cutting reserve ratios and utilizing reverse repo liquidity injections, and investors are hoping for more easy cash to fall from the sky via further policy action from the PBoC.
Oil has receded in recent weeks, but today's action sees crude barrels pinning back into near-term highs, sending WTI back over 52.00.
WTI Technical Levels
Today Last Price: 52.32
Today Daily change: 5.0 pips
Today Daily change %: 0.0957%
Today Daily Open: 52.27
Previous Daily SMA20: 48.24
Previous Daily SMA50: 51.15
Previous Daily SMA100: 60.19
Previous Daily SMA200: 64.4
Previous Daily High: 52.56
Previous Daily Low: 50.92
Previous Weekly High: 53.57
Previous Weekly Low: 48.33
Previous Monthly High: 54.68
Previous Monthly Low: 42.45
Previous Daily Fibonacci 38.2%: 51.93
Previous Daily Fibonacci 61.8%: 51.55
Previous Daily Pivot Point S1: 51.27
Previous Daily Pivot Point S2: 50.28
Previous Daily Pivot Point S3: 49.63
Previous Daily Pivot Point R1: 52.91
Previous Daily Pivot Point R2: 53.56
Previous Daily Pivot Point R3: 54.55