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Market News Oil edges up as optimism over economy outweighs fuel demand concerns (With Trading Strategy)

Oil edges up as optimism over economy outweighs fuel demand concerns (With Trading Strategy)

New coronavirus variant identified in a German hospital; Keystone pipeline: Biden 'to cancel it on his first day'.

Eden
2021-01-19
885

oil fengm.jpg


Oil edged up on Tuesday as optimism that government stimulus will buoy global economic growth and oil demand trumped concerns that renewed COVID-19 pandemic lockdowns globally could cool fuel consumption.


U.S. West Texas Intermediate (WTI) was up 0.73%, at $52.531 a barrel; Brent crude was up 0.99%, at $55.205 by 15:50(GMT+8).


Investors are upbeat about demand in China, the world's top crude oil importer, after data released on Monday showed its refinery output rose 3% to a new record in 2020. China was also the only major economy in the world to avoid a contraction last year as many nations struggled to contain the COVID-19 pandemic.


"Yesterday's data out of China was positive for oil prices," Michael McCarthy, chief market strategist at CMC Markets in Sydney, said.


Investors are watching out for U.S. President-elect Biden's inauguration speech on Wednesday for details on the country's $1.9 trillion aid package.


OANDA's Asia-Pacific senior analyst Jeffrey Halley said: "Like other asset classes, oil has received a gentle U.S. stimulus tailwind in Asia."


Oil prices have also been supported by Saudi Arabia's additional supply cuts in the next two months which are expected to draw down global inventories by 1.1 million barrels per day in the first quarter, ANZ analysts said.


Concerns about rising COVID-19 cases globally and renewed lockdowns weighing down fuel demand kept a lid on oil prices.


ANZ analysts flagged concerns about falling fuel sales in India in January from December and rising COVID-19 cases in China and Japan that could dampen oil demand.


"In Europe and the U.S., the slow rollout of vaccines is also raising concerns that a rebound in demand will remain elusive," the bank said.


A new variant of the coronavirus has been identified in a hospital in Garmisch-Partenkirchen, a Bavarian ski town, local media reported Monday.


Last Tuesday, the hospital discovered an "abnormality" for the first time in a coronavirus test device that indicated it was not one of the variants from the U.K., South Africa, or Brazil, said Clemens Stockklausner, deputy medical director at the hospital.


U.S. President-elect Joe Biden is to cancel the controversial Keystone XL Pipeline on his first day in office, North American media report.


The pipeline is projected to carry oil nearly 1,200 miles (1,900km) from the Canadian province of Alberta down to Nebraska, to join an existing pipeline.


Environmentalists and Native American groups have fought the project for more than a decade.


Work had been halted but restarted in 2019 under President Donald Trump.


Mr. Trump overturned a decision by his predecessor, Barack Obama, who vetoed a bill approving construction in 2015.


That the incoming U.S. president opposes Keystone XL is no surprise. He was one of the voices opposing the project going back to the Obama administration, his staff said during the recent election campaign, and had pledged to "rip up" Mr. Trump's approval.


But the fact that the move could come as early as day one of his presidency is still a blow to the project's supporters.


Trading Strategy (source: Trading Central)

Pivot: 52.00


Our preference: long positions above 52.00 with targets at 52.80 & 53.10 in extension.


Alternative scenario: below 52.00 look for further downside with 51.75 & 51.50 as targets.


Comment: the RSI calls for a rebound.


Supports and resistances:

53.40

53.10

52.80

52.43 Last

52.00

51.75

51.50

Pivot: 54.90


Our preference: long positions above 54.90 with targets at 55.50 & 55.80 in extension.


Alternative scenario: below 54.90 look for further downside with 54.70 & 54.50 as targets.


Comment: the RSI is bullish and calls for further advance.


Supports and resistances:

56.10

55.80

55.50

55.25 Last

54.90

54.70

54.50

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.




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