The measured move of the head and shoulders pattern goes to $15.
I expect the recent low of $20 to be retested. If that support breaks, then $15 is the next support.
Oil is facing a demand issue more than anything. 100 million bpd global production and the demand has been cut by estimates around 30%. Which makes sense since about a third of the world is under lockdown. So 30M bpd minus the 10-15M bpd cuts still leaves us with an excess of 15-20M bpd. This excess will have to be stored until capacity is reached, sold at dirt cheap prices, and burned if necessary.
The recent pump was shorts covering and longs speculating on the oil deal Trump tweeted was going to happen on Monday. It has now been postponed to Thursday the 9th. The price stopped perfectly at $29 resistance. I think price will be rejected and go down. Negative sentiment was thrown into the mix recently due to SA and Russia accusing eachother of causing the price crash. Trump calling OPEC an illegal cartel earlier today certainly doesn't help.
All my opinion. Short-biased.
I expect the recent low of $20 to be retested. If that support breaks, then $15 is the next support.
Oil is facing a demand issue more than anything. 100 million bpd global production and the demand has been cut by estimates around 30%. Which makes sense since about a third of the world is under lockdown. So 30M bpd minus the 10-15M bpd cuts still leaves us with an excess of 15-20M bpd. This excess will have to be stored until capacity is reached, sold at dirt cheap prices, and burned if necessary.
The recent pump was shorts covering and longs speculating on the oil deal Trump tweeted was going to happen on Monday. It has now been postponed to Thursday the 9th. The price stopped perfectly at $29 resistance. I think price will be rejected and go down. Negative sentiment was thrown into the mix recently due to SA and Russia accusing eachother of causing the price crash. Trump calling OPEC an illegal cartel earlier today certainly doesn't help.
All my opinion. Short-biased.