Since October, we have observed an increase in oil prices, despite the presence of a large number of negative factors. The trade conflict between China and the United States and probability of reaching a trade deal contributes to a further rise in the price of oil and the continuation of the upward trend.
This week, the market met a new wave of optimism, taking into account signals from officials from China about progress in the negotiations with the United States. Risky assets continue to be in high demand, although there is still no information in the date of the deal. The latest data on oil reserves in the United States restrains growth, without stopping it completely.
On the chart, we can see that the resistance line has been repeatedly tested, and there is every reason to expect new attempts to shift the line up. Oil may well reach the psychological mark of $60 before the end of the year. Perhaps this will happen in early December, when an OPEC summit will take place, and if we get new signals about progress in the signing of a trade deal between China and the United States. Good reports on the Chinese economy can be a stimulus for growth, and next week the PMI index of business activity in the manufacturing sector is expected to be published. Therefore, at the moment, the deals to BUY can be considered as the most optimal, and most technical analysis tools, including the Stochastic oscillator, confirm the effectiveness of such deals in the short term.
