ANALYSIS
NQ100 Finds Support from PPIApr 14
50 EMA will set the tone in UKOIL
Higher-than-expected crude oil inventories data released in the US last week had led to a decline in Brent prices. However, the tensions are still high between Russia and Ukraine. While many countries are reducing their oil imports from Russia, the record volumes of Russian oil purchases by China and India, the two largest importers in Asia, are pushing oil prices higher. Ukraine's refusal to remove the blockade on Ukrainian ports in order to restart transportation in the Black Sea on the battle line also affects supply concerns. In addition, the taxation step of the British government due to high profits of energy companies brings along supply concerns. Considering these, we believe that long positions will be more profitable in UKOIL. As long as it stays above the 50 EMA indicating 111.20, we will follow 115.20 and 117.70 resistance levels. On the other side, 109.40 will be on our radar below 109.40 support.
