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Still Bullish, Peak Oil Level Targeting February 4 Riyan Setyawan, analyst contest

Riyan Setyawan, analyst contest

Most Asian stocks ended higher on Thursday as hopes of trimming output by major producers supports the sustainability of the rally the price of oil , so that boosted risk sentiment of investors. Mood investors were also encouraged by the minutes of the meeting of the FOMC in January which showed that policy makers are starting to consider a change of plans rise in interest rates in 2016. 

The Nikkei 225 index continue its recovery from 16-month lows last week's inscribed with a rise of 2.3%, as investors ignore the decline in exports the biggest since 2009. Apart from the Japanese trade figures were disappointing, the company's stock-trading company which supplies all the needs of began to energy, grains and textiles actually a positive move. 5 Shares in Japan's largest trading companies, such as Mitsubishi , Mitsui, Sumitomo, Itochu and Marubeni closed up between 2.79% to 8.61%.

Chinese market ended the session lower, with the Shanghai Composite index slipped 0.1% after data showed inflation consumer China grew 1.8% in January, slightly weaker than the estimated 1.9% increase. The Hang Seng index in Hong Kong has appreciated by 2.3% thanks to a surge in energy stocks. The energy sector jumped 4.3%, with shares of Chinese petroleum listing in Hong Kong such as PetroChina, CNOOC and Sinopec recorded a sharp rise.

A rebound in crude oil prices is likely to continue on Thursday after a report showed industrial institutions API decline in US inventories last week, boosting market expectations that official data from the Energy Information Administration later that night also will show similar results. Sentiment in the oil market was also helped by a vote of support from Iran to step restrictions output initiated by Saudi Arabia and Russia on Tuesday.

On the technical side, further strengthening is still possible to follow the success of the previous session's closing trading above the MA-200 on the 4-hour chart. But the momentum is likely to have shrunk as the stochastic and RSI indicates overbought . It takes at least stability above 31.10 area to boost the sustainability of recovery towards the highs February 4.

Resistant: 32.10 - 32.85 - 33.55 

Support: 31.15 - 30.50 - 29.70 

Direction: Bullish over above the MA-200.


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