Last week saw crude prices weaken much further. This was a double whammy from the COVID-19 going viral globally as well as the imminent oil producer spat, particularly between Middle Eastern producers and Russian producers. That was just the cake... the cherry is in the form of a PRICE WAR, and one that has just been declared! According to Bloomberg, the Saudis are so upset with the Russians that they announced a BIG OUTPUT HIKE, of over 10 million barrels a day, in an aggressive response to the collapse of the OPEC-Russian alliance.
This move is going to wreck havoc in the markets and the mayhem should bring Crude prices to 35, or below!
In the attached chart, crude had a committed bearish candlestick to close the week. This was perhaps in anticipation of a not so favorable outcome, and so it happens. Technically, with Fibo retracement projections, we may expect crude prices to be about 35 over the next two weeks. The OBV and MACD are already bearish, and points too further downslide.
Now, when crude prices fall that low, some things begin to totally not make sense. Especially with an energy source this cheap, and a world eager to go on full steam at some point in the near future (once the COVID-19 issues are reined in. All it would then need is a trigger to spike oil prices to the moon.
Let’s watch this closely as it pans out... and needless to say, I suppose we all know what to do, right??
Plan, Position, Profit
This move is going to wreck havoc in the markets and the mayhem should bring Crude prices to 35, or below!
In the attached chart, crude had a committed bearish candlestick to close the week. This was perhaps in anticipation of a not so favorable outcome, and so it happens. Technically, with Fibo retracement projections, we may expect crude prices to be about 35 over the next two weeks. The OBV and MACD are already bearish, and points too further downslide.
Now, when crude prices fall that low, some things begin to totally not make sense. Especially with an energy source this cheap, and a world eager to go on full steam at some point in the near future (once the COVID-19 issues are reined in. All it would then need is a trigger to spike oil prices to the moon.
Let’s watch this closely as it pans out... and needless to say, I suppose we all know what to do, right??
Plan, Position, Profit
At this point of extrusion of target, it is quite possible, although I see it about 25-26 at worst.