- Energy buyers search for clues to extend the latest rally following the EIA data/trade optimism.
- G20 is on the spotlight.
Following its run up to the highest in five weeks, WTI struggles to extend the north-run as it takes the rounds to $59.15 during early Thursday.
Immediate contributors to the black gold’s rally were the weekly announcement of the Energy Information Administration (EIA) US crude inventory data and comments from the US lawmakers highlighting brighter chances of the US-China trade truce.
Although Chinese media also spread optimism surrounding the trade talks between the US and China, investors awaited further clues to extend the rally further beyond 200-day exponential moving average (200-D EMA).
With most crude-linked data out and loud, clues from the G20 meeting between the global leaders at Japan could direct immediate energy moves. Additionally, the US Dollar (USD) momentum will also be on the radar as the greenback has a negative correlation with commodities.
Technical Analysis
FXStreet Analyst, Ross J. Burland, is bullish on the energy benchmark while citing its break of 200-D EMA:
WTI is above the 200-Experiential Moving Average and has eyes for the $60 psychological figure which correlates with trend line resistance. A break there opens 63.79 swing highs. On the flipside, bears can target back down to the 200 weekly EMA (last week’s low) and the 61.8% Fibo. around the 52 handle. Lower down, there are prospects for a correction to back towards the14th Jan 50.41 low and then the 26th November lows at 49.44
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