As pessimism over oil dissipates and investors flirt with $50 a barrel again, short-sellers are getting out of the way. Hedge funds are the most upbeat about West Texas Intermediate crude in three months after bets on declining prices shrank. Meanwhile, signs that the shale boom is slowing and the market is moving closer to balance set the mood for futures to jump 8.6 per cent last week.
Base metals traded higher and will continue to rally after manufacturing data from top user China confirmed growth tempered slightly but stayed firm in July. Activity in China’s steel industry expanded in July at fastest pace since April 2016, fueled by strong demand and low levels of inventory which supported industrial metals.
CALL BUY LEAD AUG ABOVE 150.1 TARGETS 150.6 , 151.1 , 151.6 STOP LOSS 149.1