WTI up as sentiment improves towards China.
“Shanghai lockdown restriction eases, spurring optimism among market participants.”
Oil bulls extended their climb on Wednesday as market sentiment towards China improves. Yesterday, sources revealed that Shanghai local government has allowed financial institutions to resume their work in office. The decision was made after Shanghai recorded zero coronavirus cases for three consecutive days outside of quarantine area. The news raised optimism among traders as easing of restriction could help China to regain its economic momentum.
Quick recap on USOIL
USOIL extended its recovery following a strong rebound near 98.60 threshold.
USOIL Weekly Technical Analysis
USOIL is currently testing at 114.95, its previous stronghold which limits potential upside for the time being.
USOIL Daily Technical Analysis
Daily chart shows overall structure which skewed towards sideways for the time being. Nonetheless, a break above will provide short-term opportunity for further appreciation towards 126.03.
ORDER: BUY STOP
STOP LOSS: 113.00
Target 1: 122.00
Target 2: 126.00
ZFX Analyst’s Comment
While USOIL may have tendency to oscillate sideways in the mid-term, it has potential to break above and enter further appreciation in the near-term. Thus, a break above will provide solid confirmation for great opportunity ahead.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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