Global oil prices settle above $50 for the first time since March on vaccine optimism(With trading strategy)
WTI is expected to hit the key resistance of 50; ECB expands and extends its bond-buying as coronavirus resurgence weighs on the recovery.

Oil rose around 1% on Friday, extending a sharp rally overnight that saw Brent rise above $50 for the first time since March, as coronavirus vaccination rollouts kept hopes alive that demand for crude would build up next year.
U.S. West Texas Intermediate (WTI) crude was at $46.967 barrel, fell 0.21%, Brent was up to $50.170 a barrel, fell 0.18% by 11:50 (GMT+8).
That leaves prices set for a sixth consecutive week of gains as promising vaccine trials helped quell gloom over record increases in the number of new infections and deaths around the world in the coronavirus pandemic.
Britain began vaccinations this week, and they could start as soon as this weekend in the United States. Canada on Wednesday approved its first vaccine and said initial shots would be delivered starting next week.
“The recovery from the pandemic will accelerate once a vaccine is widely available, further supported by ongoing fiscal and monetary stimulus from governments around the world,” ANZ Research said in a note.
“The broad market rally is expected to continue next year, with commodities set for a positive year amid an improving economic backdrop,” ANZ said.
Concern over an attack on an Iraqi oilfield also lent support. Two wells at a small field were set ablaze by explosives on Wednesday, but overall production from the field was not affected.
“Traders are also nervous about the oil supply,” said Naeem Aslam of Avatrade, referring to the Iraq attack.
Oil had recovered from historic lows reached in April when the pandemic hammered demand, helped by a record supply-cut deal by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+.
OPEC+ will further ease its supply restrictions in January by adding an extra 500,000 barrels per day although the easing is more gradual than previously agreed, to provide additional support to the market.
The European Central Bank on Thursday expanded its massive monetary stimulus program by another 500 billion euros ($605 billion), as a second wave of lockdown measures weighs on the euro area’s economic recovery.
Markets had largely expected the central bank to add to its bond buying, having vowed in October to “recalibrate its instruments” as a resurgence in coronavirus cases across the Continent led to further national shutdowns.
The ECB held interest rates on its main refinancing operations, marginal lending facility and deposit facility at 0.00%, 0.25% and -0.50%, respectively.
The central bank launched its Pandemic Emergency Purchase Programme (PEPP) earlier this year in a bid to shore up the bloc’s economy in the wake of the pandemic. Following Thursday’s expansion, the total asset purchase value is now 1.85 trillion euros, and the ECB extended the horizon for purchases under the PEPP to March 2022. Reinvestments of assets maturing from the PEPP have also been extended until the end of 2023.
This is quite positive for oil prices. Investors have seen hope for a recovery in oil market demand during the economic stimulus, which has also strengthened the market’s confidence in buying more crude oil.
Trading Strategy (source: Trading Central)
Pivot: 46.65
Our preference: long positions above 46.65 with targets at 47.30 & 47.75 in extension.
Alternative scenario: below 46.65 look for further downside with 46.30 & 45.95 as targets.
Comment: the RSI is mixed and calls for caution.
Supports and resistances:
48.15
47.75
47.30
46.82 Last
46.65
46.30
45.95
Pivot: 50.00
Our preference: long positions above 50.00 with targets at 50.75 & 51.05 in extension.
Alternative scenario: below 50.00 look for further downside with 49.75 & 49.35 as targets.
Comment: the RSI is mixed with a bullish bias.
Supports and resistances:
51.60
51.05
50.75
50.28 Last
50.00
49.75
49.35
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.
Bonus rebate to help investors grow in the trading world!