Oil

[delpacing]

Oil managed to climb today, but had fallen to below $ 90 a barrel amid worries about the economy airings Europe and China.

Despite rising, prices are still near its lowest level in seven months following a string of bad data from Europe and China, which raises concerns about the prospects of demand. Oil has tumbled 15% this month and touched its lowest level since October 2011. Other commodities such as copper also fell sharply.

German manufacturing PMI index and the euro zone contracted last month. German manufacturing PMI index 45.9 in the trunk e 46.7 in May from April. While the euro zone fell to 45 from 46.9. German business sentiment fell to 106.9 in May from 109.9 in April, indicating the banyan are pessimistic about the prospects of the business.

[ashaab]

We have seen a rally this morning, however remains limited below 91.05, thus we still h old onto our morning expectations taking into consideration the effect of the double top pattern alongside the bearish crossover on Stochastic. On the other hand, steady trading above 91.05 shall invalidate the scenario and extend the correction to initially retest 92.75.



Recommendation : Our morning scenario remains valid. If stop loss was triggered; we recommend buying crude above 91.05 targeting 92.75 and 93.80, with stop loss below 90.20.

[ashaab]

The commodity is attempting to settle below 91.05, and that may lead to further downside movement, especially that ADX indicator hints the bearish trend is getting stronger. Thus, we move from neutrality to expect a bearish move supported by the descending channel shown on image.



Recommendation : Based on the charts and explanations above we recommend selling oil below 91.05 targeting 90.20,89.30 and 88.50. Stop loss with four-hour closing above 92.20.

[delpacing]

Oil also fell because of the potential deal between Iran and the UN nuclear watchdog to reduce concerns about supply. The news says Iran agreed to allow International Atomic Energy Agency (IAEA) continued its inspection of its nuclear program. The agency will have access to inspect the site, scientists and documents to make sure Iran does not develop weapons nuklir.minyak Light Sweet types for June delivery fell 84 cents to $ 91.01 per barrel. Meanwhile, Brent crude for July delivery dropped 63 cents to be $ 107.78 per barrel.

[ashaab]

We consider the current downside attempt as a pullback so long as 91.80 remains intact, as the technical factors suggest that price remains above the descending channel, in addition o the positivity seen on stochastic where it completed a bullish crossover, thus we hold onto our morning expectations .



Recommendation : Based on the charts and explanations above our opinion is buying crude around 93.10 and take profit at 93.80, 94.80 and 95.70. Stop loss with 4-hour closing below 91.80 might be appropriate.

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"China's central bank has cut its capital requirements for banks and stimulate the growth of such comments indicate a step further in the coming months to avoid a hard landing," said Addison Armstrong, Tradition Energy's senior director. Oil traders and analysts are still skeptical about negotiations in Iran as the approach of the EU ban on imports of Iranian oil in July.

[ashaab]

Price settles among 92.75 and 91.05, and that forces us to remain aside , where the next possible direction requires a break above or below on of the levels, especially that there is a contradiction between the double top pattern and the oversold conditions on momentum indicators.



Recommendation : Based on the charts and explanations above we recommend staying aside awaiting more confirmation.

[delpacing]

Saudi Arabia, which is the world's largest oil exporter now has assumed the position of Russia as the largest manufacturer for the first time in six years, according to official data on Sunday (20/05). Nymex crude oil rose 37 cents to $ 91.85/barrel. Brent rose 61 cents to $ 107.75/barrel.

[simpleforex68]

We can see in H1 chart of the pair. The price is in downtrend because it is below the Ichimoku Kumo Cloud and EMA 100 and there is also a downtrend line. Therefore, I think the price will be up to the trend line and then it will decrease strongly with the downtrend.

[ashaab]

After range-trading yesterday; the commodity starts the trading session with a clear negative bias breaking below the pivotal support at 92.75, and this activates the intraday bearish scenario for today, supported by the pressure from the 10,20,and 50 exponential moving averages. In general, stability below 93.80 is the main bearish catalyst, targeting mainly 91.35 and 90.20.



Recommendation : Based on the charts and explanations above our opinion is selling crude below 92.75 and take profit at 91.35 and 90.20. Stop loss above 93.80 might be appropriate.