Hi Friends,
FUNDAMENTAL ANALYSIS
Prices increased after the Moderna news on Monday stating that the Phase 3 study of the vaccine candidate, which had enrolled 30,000+ participants in the U.S. had a efficacy of 94.5%.
This news comes after Pfizer and BioNTech announced a 90% efficacy of their own vaccine candidate also pushing prices higher.
There has also been positive news coming from China. China crude oil refinery throughputs increased by 2.6% YoY in October, setting a new refinery run record of 14.09 (m) bpd. Demand for Chinese fuel held firm last month, with gasoline demand also holding during early October, while domestic jet fuel demand has nearly reached pre-crisis levels.
In addition to the positive news, Joe Biden's COVID-19 advisory team said on Sunday that a full national lockdown in the U.S. would be a "measure of last resort".
TECHNICAL ANALYSIS
The market for crude oil continues rallying but is struggling to make a firm stance to the up-side. The $43 above is a huge resistance level, and as the API/EIA stock counts have come out less than forecasted, the idea of crude oil pushing significantly higher at this time may be a bit of a stretch. However, traders may be focusing on the idea that the vaccine may lower COVID guidelines and open economies.
The crude oil sector was hit with a huge oversupply due to the the virus crushing demand, therefore seeing a ceiling on this market. There seems to be a lot of supply at the $43 level, so it will be interesting to see how much volume comes in for a potential higher high.
On the other hand, if we cannot break $43 then we will see a push lower to support at $41-$40, which if we push lower than this then we may see a further reduction to $36-$37 level or even $35. These levels are where we have seen a supply of buyers previously, hence why wouldn't be surprised to see a retracement from there.
CONCLUSION
Even though we have seen great news in the last couple weeks in terms of a vaccine there are still mixed emotions in the market as there are still a number of hurdles to tackle. Although the fundamentals and technicals aren't in sync the technical side is showing clear support and resistance levels.
Thanks for reading.
If you like the content please like, follow and comment with your own opinion.
The Market-Sniper Team
FUNDAMENTAL ANALYSIS
Prices increased after the Moderna news on Monday stating that the Phase 3 study of the vaccine candidate, which had enrolled 30,000+ participants in the U.S. had a efficacy of 94.5%.
This news comes after Pfizer and BioNTech announced a 90% efficacy of their own vaccine candidate also pushing prices higher.
There has also been positive news coming from China. China crude oil refinery throughputs increased by 2.6% YoY in October, setting a new refinery run record of 14.09 (m) bpd. Demand for Chinese fuel held firm last month, with gasoline demand also holding during early October, while domestic jet fuel demand has nearly reached pre-crisis levels.
In addition to the positive news, Joe Biden's COVID-19 advisory team said on Sunday that a full national lockdown in the U.S. would be a "measure of last resort".
TECHNICAL ANALYSIS
The market for crude oil continues rallying but is struggling to make a firm stance to the up-side. The $43 above is a huge resistance level, and as the API/EIA stock counts have come out less than forecasted, the idea of crude oil pushing significantly higher at this time may be a bit of a stretch. However, traders may be focusing on the idea that the vaccine may lower COVID guidelines and open economies.
The crude oil sector was hit with a huge oversupply due to the the virus crushing demand, therefore seeing a ceiling on this market. There seems to be a lot of supply at the $43 level, so it will be interesting to see how much volume comes in for a potential higher high.
On the other hand, if we cannot break $43 then we will see a push lower to support at $41-$40, which if we push lower than this then we may see a further reduction to $36-$37 level or even $35. These levels are where we have seen a supply of buyers previously, hence why wouldn't be surprised to see a retracement from there.
CONCLUSION
Even though we have seen great news in the last couple weeks in terms of a vaccine there are still mixed emotions in the market as there are still a number of hurdles to tackle. Although the fundamentals and technicals aren't in sync the technical side is showing clear support and resistance levels.
Thanks for reading.
If you like the content please like, follow and comment with your own opinion.
The Market-Sniper Team
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.