Morning Insights 31st January

Simon Alagbe

Analyst


OILs (Brent)

Black gold gaped upon opening this week further confirming the overall bullish signal necessitated by the supply concerns and political tension in the Middle East and Eastern Europe. The expectations that OPEC+ at the Joint Ministerial Monitoring Committee (JMMC) meeting scheduled for Wednesday this week will keep the current policy of steady increase of production. The global decline in the cases of COVID-19 will help boost the demand for crude as economies will continue to open up and lift all restrictions on travel. 


Technical

The instrument is expected to cover the gap between the close of last week and the open of this week's candle before the commodity finds support and surges back northward. I expect Brent to find support at the $88 price zone before returning to the upside with a stop loss at 86.87 and take profit at $90.


Fundamentals 

No major economic data with a bearing on the commodity.

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