The flat trend continues. Despite some progress in the negotiations between China and the United States, we can see a slowdown in the global economy. In addition, there is another trade dispute between the US and the EU. In the very near future, the US is expected to impose tariffs on 150 goods from the EU, after they have been agreed with the WTO.
Today, investors again abandoned investments in risky commodity assets, after the publication of China's GDP, which grew by 6% in the third quarter of 2019. This is slightly below expectations and shows that GDP growth is the weakest in 30 years. So, there is every reason to fear a decline in oil demand, considering the drop in import/exports by 3.2/8.5%, respectively.
Thus, there are not enough incentives for the growth of oil prices, while there are more and more factors that put pressure on oil. In the current situation, the deals to SELL seem the most effective in the short term, which is confirmed by the Stochastic oscillator, which indicates about the rates in the overbought zone. The entry points to the market can be set at the levels 51.09 and 66.27. Achieving the first one is more likely.
