Vaccines detonated oil prices, futures soared by more than 4%, OPEC+ plans to cut production, the market outlook is promising (with trading strategy)

"There was excessive buying pressure during the session, which pushed the oil market above the level supported by fundamentals, and then fell back and held some gains," said Gary Cunningham, head of market research at Tradition Energy.

Moderna said that its new crown vaccine is 94.5% effective. Vaccine news, coupled with market expectations that OPEC+ will maintain low production next year to support oil prices, caused the US and Brent crude oil to rise by more than 8% last week.

OPEC+’s current production reduction scale is about 7.7 million barrels per day, and the implementation rate of the October production reduction agreement is expected to be 96%. Its current plan is to increase production by 2 million barrels per day from January. However, according to sources, the second wave of the epidemic prompted OPEC+ to decide to postpone its production increase plan for at least three months to support oil prices.

In addition, the rebound in economic data from China and Japan also supported oil prices. The data also showed that China's average oil refinery processing volume in October hit a record high.

Trading strategy (Source: Trading Central)

Pivot: 43.65

Our preference: long positions above 43.65 with targets at 44.65 & 44.95 in extension.

Alternative scenario: below 43.65 look for further downside with 43.20 & 42.65 as targets.

Comment: the RSI has just landed on its neutrality area at 50% and is turning up.

Supports and resistances:

45.25

44.95

44.65

44.10 Last

43.65

43.20

42.65

Guideline for Trading Central strategy

Trend chart reading guideline

1. First look at the time period in the upper left corner of the chart：

・30MIN and 1H chart shows the trading suggestions for intraday

・Daily chart shows the market trend analysis in next 2-3 days

2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.

3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators:  Blue line is RSI, Red line is 9MA;

4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.

How to use TC strategy？

1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell.

2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.

3. [Alternative scenario] is the plan B for your reference.

4. [Comment] is the technical analysis of market trends and technical support for trading strategies.

5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.

Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.