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The oil is still in oversold stance with continued economic deceleration in China

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 19, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    Brent-Mar16 Daily 19-01-2016 07-11-54 ص.jpg
    The data came today from China to highlight economic deceleration, as the Chinese Q4 GDP has grown by 1.6% quarterly, while the consensus was referring to 1.7%, after growth by 1.8% in the third quarter with yearly expansion by 6.8% as expected, after 6.9% in the third quarter.

    Urban investment in China increased by 10%, while the market was waiting for increasing by 10.2% as the same as November.

    The retail sales rose in China last December by 11.1% yearly vs. 11.3% expected, after 11.2% in November and also the industrial production in December rose by 5.9% y/y and the foreseen was 6%, after increasing by 6.2% in November.

    The Asian bourses are trading in a mixed way, after absence of the US major stocks indexes in the first day of this week because of Martin Luther King Birthday holiday, while their future rates are referring to improving, after last Friday excessive selling.

    It's important today to wait for the inflation data which will come from UK, Germany and EU generally, as key figures to the next steps of MPC and ECB which are watching tame inflation pressure with continued retreating of the energy prices.

    After the beginning of implying the Iranian nuclear pact, Brent Mar. 16 has been exposed to increasing downside momentum in the beginning of this week which opened on a downside gap at $28.23, before having extension to $27.98.

    The oil prices have been already under pressure because of continued worries about the demand solidarity because of the economic slowdown signs from china and the weaker than expected manufacturing performance in US last month with US crude inventories hovering above 480m barrels currently.

    Brent Mar. 16 capitalization on the Iranian Saudi tension in the beginning day of this year was to form merely a peak at $38.97 just above its daily SMA20, before retreating acceleration led its daily RSI to have continued existence into its oversold area below 30 reading now 22.884 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in into its oversold area below 20 reading 15.997 and also its signal line which is reading now 15.287, despite the rebounding for trading near $29 currently.

    Important levels: Daily SMA20 @ $34.22, Daily SMA50 @ $39.41, Daily SMA100 @ $44.28 and Daily SMA200 @ $51.83


    S1: $27.98
    S2: $27.32
    S3: $25.51
    R1: $31.18
    R2: $32.37
    R3: $34.70

    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143

    To open your account at Trade-24 - Click here
    prav likes this.

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