USDX
104.153

0.34%

XAUUSD
1824.76

0.71%

WTI
109.262

0.90%

EURUSD
1.04371

0.23%

GBPUSD
1.22520

0.08%

USDJPY
129.082

0.10%

USNDAQ100
12287.29

0.64%

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      WTI: Buying Slightly Weak After Sharp Price Rise, with Prices Facing Potential Pullback

      #Russia-Ukraine Conflict##Global Inflation##OPEC#
      Summary:

      In the past few weeks, the price of WTI crude oil continued to fluctuate widely in the ascending trend channel, which indirectly indicates that there is some uncertainty in the crude oil market. Investors have a lot of information to pay attention to at this time, especially since many factors related to geopolitics and technology will influence the volatility of the overall market.

      Buy WTI CLOSED
      EXP

      107.644

      ENTRY PRICE

      109.200

      TGT PRICE

      104.500

      SL PRICE

      109.262 +0.972 +0.90%

      369

      Points

      Profit

      104.500

      SL PRICE

      TARGET UNREACHED

      108.013

      CLOSING PRICE

      107.644

      ENTRY PRICE

      109.200

      TGT PRICE

      Fundamentals

      The sensitivity of geopolitical tensions remains a theme in crude oil markets. Energy prices have generally been higher since the Russian-Ukrainian conflict erupted more than two months ago. However, over the past few days, the situation may have escalated as Russia and the European Union sanctioned countries that buy crude oil and natural gas. Some commodity traders will be banned from buying Russian crude oil until May 15.
      As the conflict continues, we may see more European countries move away from Russian energy and subsequently spark some concerns in the market. Russia, on the other hand, may find it more appropriate to push energy further into Asia. However, the International Energy Agency (IEA) said in its May report on energy markets that it did not see energy supply levels affected by sanctions on Russia.
      Moreover, excluding Russia from global energy supplies could put further pressure on other crude producers, such as Saudi Arabia and the United States, to be more consistent with their output. In the event of any other energy supply disruptions from other major energy producers, we could see further gains in crude oil prices.
      In addition, we recommend that investors keep an eye on developments in China, as they may be critical in predicting future prices. The lockdown in China due to the pandemic could affect global demand and, subsequently, oil prices. We believe that if further lockdowns are announced or even extended, it could see lower oil prices as China remains the world's largest energy consumer.WTI: Buying Slightly Weak After Sharp Price Rise, with Prices Facing Potential Pullback_1

      Technical Analysis

      WTI crude oil prices continued to gain enough momentum on the rise as the price broke the mid-section of the ascending trend channel and was looking to test the resistance near $112.
      The 100 SMA remains above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than break. The price is also trading above these two indicators so that these moving averages can act as dynamic support on the downside. The RSI has more upside, so the price may continue to follow until overbought conditions are met.
      Although the stochastic is overbought, it shows that the bulls are exhausted; therefore, if the price pulls back, it means that the sellers are about to take over. In this case, crude oil could fall back to support near the channel, and in more sharp sell-offs, prices could head back to the channel bottom near $100. It's recommended to buy the dips in the short term.
      Support: 105.20/104.30
      Resistance: 107.00/107.20
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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      Member-only Database

      Comprehensive forex, commodity, and equity market data

      Eva Chen

      analyst

      Master of Economics, 8 years in the financial industry, CFA holder, joined HSBC (Hong Kong) Bank in 2013 after graduating from the University of California, USA in the Investment Research and Markets Department. With years of financial market experience and trading experience, having provided excellent investment advice to many brokerages, entity derivatives importers and clients in Greater China.

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      5

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      79

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      56.76%

      P/L Ratio

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      Most Traded Assets

      WTI、XAUUSD、USDX

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