The oil price remains in a bearish mode. Despite the exit of Ecuador from OPEC, the main trend is unchanged as investors continue to bet on further declines. The main reason behind this is the expected slowdown of economy, which is pulling down the price. The trade war between China and the US, and now also between the US and the EU is contributing to this negative scenario and even a rate cut at the end of this month might not be enough for a reversal in fortunes.
From a technical point of view, prices could find a first support level at $51-$51.50, which was the low reached in June and August. This would be the first key level to monitor to assess the strength of the bearish momentum.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
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© 2019 High Leverage FX - All Rights Reserved.