Potential China reopening is supporting the price of oil
The primary trends for UKOil and USOil are starting to show signs of strength. Both charts have charted a higher trough (HT). This price action sets up a platform for a higher peak (HP), which would be bullish. Moreover, their stochastics have started moving up. I.e. the downward momentum that has been present since June has waned.
If the HP charts, oil will be in an uptrend. Moreover, if the stochastics makes their way to the upper quintiles, an underlying bullish momentum will be present on a primary trend basis.
There is optimism that China will reopen from their strict Covid policy. Given that it is the 2nd largest energy consumer, this will be significant. An unverified note on social media suggested that a "Reopening Committee" had been formed. With the OPEC+ cuts, this may catalyse further price appreciation and a higher peak.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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