WTIUSD – US CRUDE OIL SPOT, WTI GATHERS STRENGTH FOR AN UPWARD MOVE
The US crude oil which has been trading upwards since September last year continues to show signs of upward tides. We saw price pullback to mean levels last month and bounced higher, but could not break above the previous higher-high of $65.811 before retracing to $60.00 key support level. The market now appears to be gathering steam for an upward move this month as the first candles of the month shows strong rejection of lower prices.
More aggressive traders may take the bait and take long positions on US Crude oil spot this week, while placing a stop below the two bullish pinbar candles of 1st and 2nd of March. The Profit potential of this trade plan may be up to $63.928 or more.
US OIL WTI, DAILY CHART
XAUUSD – SPOT GOLD REBOUNDS FROM CORRECTION
In my analysis last week, I discussed that spot gold was likely to find support within the zone 1309.15 – 1303.23. Indeed, price did find support within this zone as we saw strong rejection of lower prices and a bounce in the direction of the uptrend as price tested this key hotspot.
This presents buying opportunities for traders to take long positions on spot gold this week. The reward potential may last up to 1356.80 if this signal is validated.
1309.15 – 1303.23 will still serve as support reference, and a daily close below this zone should nullify bullish sentiments for this week.
GOLD SPOT, DAILY CHART
GBPUSD – STERLING CABLE SHOWS SIGNS OF A REVERSAL
The sterling cable which has been trading higher over the last three months is now showing signs of a reversal for a couple of reasons:
- The bounce from support on the daily chart at 1.3822 on February 13th failed to push price higher past the previous higher-high of 1.4264
- Additionally, when bulls gained control in the market on the 22nd of February, they still could not succeed in pushing price past previous higher-high 1.4264, before they were overpowered by bears
- And lastly, the 4 hour chart of sterling cable is trending downwards.
These are all early signs that bulls may be losing the battle on the sterling cable pair.
Traders may therefore trade the sterling cable in line with the 4 hour chart by selling short within the zone 1.3802 – 1.3873.
STERLING CABLE, 4HOUR CHART
By E.O. ESSIEN
E.O Essien is an Associate Financial Economist, author, currency trader and a private fund manager. He can be contacted via email at elijahotoo.eo@gmail.com or on +233203656160.
