1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

The oil prices slide pushes the risk appetite down

Discussion in 'Current Market Sentiments' started by fx-recommends, Feb 23, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    With the oil prices slide again, The investors could easily shrug off the improving of the US housing market which has been highlighted yesterday by the release of Jan US Existing Home Sales which have shown yearly rising by 5.47m, while the market was waiting for 5.32m, after 5.45m in December.

    The US equities have been tempered also by Feb US consumer confidence falling to 92, while the consensus was referring to 97, after 97.8 in January.

    While gold could get use of this dovish market sentiment which persisted during today Asian session to rise for trading again near $1230 with US treasuries yields retreating, as the demand for safe haven could boost their prices.

    The oil prices have been negatively impacted by Saudi Oil Minister Ali Al-Naimi reaffirmed on only freezing the oil production at January levels according to the reached deal with Russia, Qatar and Venezuela on Feb. 16 for solving the oil prices slide crisis.

    From the other side, Iran’s oil minister Bijan Namdar Zanganeh said that It’s “ridiculous” for Saudi Arabia to propose that other nations will freeze production, after the kingdom has already increased its output to be more than 10m barrels a day, while Iran is planning to raise its daily production by one million in the coming months, after lifting the sanctions on it.

    It looks that there can be no breakthrough of this crisis with no Iranian Saudi deal because of the existing tension between these 2 countries.

    Brent Apr. 16 Daily 24-02-2016 01-32-20 ص.jpg
    Brent Apr. 16 contained last Monday white day by a dark day yesterday brought it down to be traded below $33.

    Brent Apr. 16 is now trading below its daily SMA20 and daily SMA50 again, after forming lower high at $35.75 below last Jan. 28 high at $36.75 which has been the highest reached level, after forming a bottom at 27.10 on last Jan. 20.

    Brent Apr. 16 daily RSI (14) is now in the neutral region reading 48.401 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is still having its main line in neutral area reading 44.330 and leading to the downside its signal line which is in a higher place in the neutral region reading now 55.506.

    Brent Apr. 16 is waiting today for the release of US EIA Oil stockpile of the week ending on Feb. 19 to be up by 3.165m, after rising a week earlier by 2.147m to 504,105m

    Important levels: Daily SMA20 @ $33.51, Daily SMA50 @ $33.90, Daily SMA100 @ $40.29 and Daily SMA200 @ $47.84


    S1: $31.80
    S2: $29.87
    S3: $27.10
    R1: $35.75
    R2: $36.75
    R3: $39.68

    Have a good day

    Kind Regards

    Global Market Strategist
    Walid Salah El Din
    Mob: +20 12 2465 9143
    E-Mail: mail@fx-recommends.com

Share This Page