Oil prices rose on Monday morning as markets acted in response to news that China and the United States have put an alarming trade war between the world’s two biggest economies "on hold".
The U.S. trade war with China is "on hold" after the world’s largest economies agreed to drop their tax threats while they work on a wider trade agreement, U.S. Treasury Secretary Steven Mnuchin said on Sunday, giving global markets a lift in early trading on Monday.
"The temporary trade dispute will de-escalate over time through negotiation," U.S. bank Morgan Stanley (NYSE:MS) said. "Both sides plan to work on implementing agriculture and energy purchases and to continue to negotiate on manufacturing and service trade, bilateral investment and intellectual property protection in coming months," it added.
Crude oil daily chart has formed “Rising wedge” pattern. The last few sessions ended up bearish in trend but consolidated inside the channel. The market is expected to continue in bearish momentum, testing all the way through 4800-4750 levels in the upcoming sessions. Alternatively, if the market breaks above a strong key resistance holding at 4900 on daily close basis then it might turn overall bullish. The upside rally could test 4950-5000 levels. Key support holds at 4750.
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