Oil Daily Analysis : 05 February 2021

The daily oil analysis on February 5, 2021 will discuss that oil prices experienced a significant spike during several trading days in the market. The increase in oil prices is supported by hopes of a recovery in world oil fuel demand amid market participants' hopes that a stimulus agreement on the US Covid-19 relief package will be reached. This hope and positive sentiment caused the movement of oil prices in the market to rise. The increase in oil prices is predicted to continue but for a limited period of time. On the other hand, the strengthening of the US Dollar has been seen since the beginning of 2021, although in general the weakening of the US Dollar actually occurred in 2020. The strengthening of the US Dollar is due to physical buying actions carried out by investors. They took this action because they believe that the United States' economic recovery from the Covid-19 pandemic will be relatively stronger and faster when compared to other countries in the world. Recent US economic data releases also show that the US economy is starting to wriggle. This can be seen in terms of employment. After the release of the latest weekly US jobless claims data released last night. It was recorded that there were around 779,000 people who applied for unemployment benefits last week, this data is reduced from last week's data released at 812,000, and this week's data release is better than market participants' predictions. In addition to the positive US weekly unemployment rate data, previously also after the release of the ADP Non Farm Employment Change data which was released showed an increase from -78,000 to 174,000 in January. According to one of the experts from CitiFX, said that the strengthening of the US Dollar is only temporary. One of these experts argued that with the weakening of the shock effect that has been shown by the 10-year US Treasury yield will run out of energy, there will also be a weakening in the Greenback. "CitiFX Technical also said that the market turmoil faced by market participants that was initially frozen has begun to seem to thaw. This is because. The development of the inflation rate compared to the dynamics of reflation will be able to create additional turbulence in the short term in the US Dollar. Globally, however, we believe that the upward but short-lived trend shown in bond yields will affect the weakening and strengthening of the US Dollar.

Oil Daily Analysis Predictions

Today's prediction in OIL is expected to continue its rise, and the recommended OP (Open Position) is BUY at the level of 56.85. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points. This the daily analysis of oil on February 05, 2021. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.