Oil and gold head to higher ground

Oil stages an impressive rally

The tail-chasing noise was there for all to see overnight, reaching eardrum splitting decibels. The robust US Manufacturing PMI triggered a squeeze of recent short positions. Brent crude rose 3.67% to USD39.25 a barrel overnight, all the more impressive after probing USD36.00 a barrel earlier in the session. WTI rose 3.80% to USD37.10 a barrel, having tested USD34.00 a barrel earlier in the session.

From a technical perspective, both contracts traced out bullish outside reversal days, making new lows before tracing out a higher close than the day before. WTI is testing its 200-DMA at USD37.00 a barrel, with Brent’s 200-DMA resting at USD40.40 a barrel.

The sentiment was assisted by stories circulating that Russian producers are reconsidering the scale of production increases scheduled for January. Although ignoring the fact that the government makes those decisions has certainly helped the oil rally along.In Asia, oil has […]

Click here to view original web page at www.marketpulse.com

About the author: StockMan

Please remember:

The information provided here is for general knowledge and educational purposes only.
It is not intended to be a substitute for professional financial advice.
Every individual's financial situation is unique, and what works for one person may not work for another.
Before making any investment or financial decisions, you should always consult with a qualified financial advisor who understands your specific circumstances and goals.

Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, should never be acted upon. Please be aware that any information posted on this site should not be considered to be financial advice and i am not a financial advisor.