USDX
102.628

0.17%

XAUUSD
1960.88

0.23%

WTI
73.215

0.45%

EURUSD
1.08196

0.21%

GBPUSD
1.23108

0.20%

USDJPY
131.075

0.34%

USNDAQ100
12598.40

0.73%

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      WTI: USD Weaken, WTI Hovers at the Bottom

      Commodity
      Summary:

      The USDX, which restrained the strength of crude oil previously, may gradually reverse to become supportive of stronger oil prices.

      Buy WTI
      End Time
      CLOSED

      74.000

      ENTRY PRICE

      78.500

      TGT PRICE

      71.500

      SL PRICE

      73.214 +0.327 +0.44%

      2500

      Points

      Loss

      71.500

      SL PRICE

      71.496

      CLOSING

      74.000

      ENTRY PRICE

      78.500

      TGT PRICE

      Fundamentals

      Oil-producing countries: According to a statement issued by Iran and Saudi Arabia, both countries agreed to restore diplomatic relations and reopen their embassies and missions in less than two months. Also, the two countries agreed to initiate a security cooperation agreement signed in 2001, as well as another trade, the economic and investment agreement earlier, which may be very beneficial for concerted action in the oil market later. 
      Inventory: The inventory report released by the EIA showed that US crude oil inventories decreased by 1.694 million barrels to 478.51 million barrels in the week ended March 3rd, compared to a previous estimate of an increase of 0.395 million barrels. In addition, crude oil inventories in the Cushing region decreased by 0.89 million barrels to 39.828 million barrels, while gasoline inventories were 238.06 million barrels after a deduction of 1.134 million barrels, compared to a previous estimate of a decrease of 1.863 million barrels.
      Demand: OPEC and EIA expect a satisfying oil demand for the year, while Saudi Arabia raises official crude oil in Asia for the second consecutive month. 
      Supply: the number of active oil rigs plunge for the third consecutive week in the US, and there have been decreases in six of the last eight weeks. 
      In general: the main reason for the recent depreciation of price is the rise of market risk-aversion sentiment caused by the bankruptcy of the Silica Valley Bank (SVB), which has become the most serious bank closure since September 2008, resulting in market panics. Furthermore, investors are worried that the spread of panic will trigger a run among other US financial institutions. Soon, risk factors will keep growing, which has also raised concerns about the risks posed to other banks by the Fed's sharp interest rate hikes so far. Meanwhile, with the speculation about whether the Fed will slow down monetary tightening, the market is now significantly cooling the expectation for the March rate hike, and more rate cuts are expected during the year. Under the pressure of short-term risks, the Fed may stop rate hikes, or even cut interest rates, which is good news for crude oil.

      Technical Analysis

      Referring to the 4H chart, WTI has been running in the channel shown below since last November, with a range between 73 to 82. Now, WTI reaches the lower area of the channel after continuous descending. Moreover, WTI has been running for a long in this channel, and the result is astounding, while the bottom support is also strongly reliable. Additionally, MACD declines and breaks below the 0-axis to the oversold area, indicating a powerful rebounding momentum in the short term, it is recommended for aggressive traders to trade at lows in the near term after oversold. WTI: USD Weaken, WTI Hovers at the Bottom _1

      Trading Recommendations

      Trading direction: Long
      Entry price: 74.000
      Target price: 78.500
      Stop loss: 71.500
      Support: 73.000/72.000
      Resistance: 80.000/82.500
      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 signal, or any other product is suitable for you based on your investment objectives and financial situation.

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      Win Rate

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      P/L Ratio

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      Focus on

      WTI, COPPER, XAUUSD

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