WTI recovers previous losses amid China-positive catalysts
|- Rising forex reserves and gold purchases join upbeat trade balance numbers from China.
- Welcome catalysts from world’s largest industrial player please energy buyers.
- Trade-related news remains in the limelight.
With latest fundamentals from the world’s largest industrial player being positive, WTI recovers previous losses to trade near $54.30 during early Monday.
The black gold was on the back foot at the week’s start as US-Mexico deal and expectations of trade talks between the US and China propelled the US Dollar (USD) strength, which in turn has a negative correlation with commodities.
However, welcome fundamentals concerning China, the world’s largest industrial player, pleased energy buyers afterward.
Not only increased forex reserve, gold purchase and higher than expected trade data but hawkish comments from China’s State Administration for Foreign Exchange also portrayed the strength of the dragon nation.
Also, the latest week’s data on Friday showed that the number of active US rigs drilling for oil fell 11 to 789 compared to a previous increase of 3.
Given the absence of major data on the economic calendar, trade-related news may gain major attention of traders seeking clues for fresh impulse. Furthermore, the political tussle between the US and Iran may keep offering intermediate trade opportunities.
Technical Analysis
Low of May 29 and near-term channel-resistance guard the upside around $56.91, which in turn increases the importance of $5330 and $51.20 as immediate supports. Given the quote’s rise past-$56.91, $57.50 and $58.20 may entertain buyers.
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