WTI Crude Oil initially overreacted to the news of the assassination of Soleimani in Iran. Crude has also overreacted to the downside, and is now flirting with the lower support trend-line drawn from the post drone-strike low in Q4 2019. I believe crude can rally meaningfully over the next 2 weeks, as we are at a key technical level, which is also supported by the lower Bollinger band, and 200day EMA. On the Macro front, growth in the US continues to slow, whilst we are seeing a pickup in inflation. This is a reflationary environment, and is confirmed by the recently weaker US Dollar. As commodities are priced in dollars, globally, they become more attractive, and hence, appreciate.
Trade closed: stop reached