USOIL afraid of Corona? OPEC tries to support!

USOIL trading multiyear @ lows but shown a good jumpy reversal in the week start (March 02, 20), due to the even a great engulfing has been observed.

The lowes occurred due to global slow down fears. The fear is so dense that OPEC was literally forced to cut production which was seen in the major slow down in 2008 - 2009.

As it's been reported that OPEC have already cut the production by 150000 BPD already but looking at the decline in the demand they can increase the cut to 600k to 1M BPD in a desperate try to maintain its prices. As well as hopes are high from the National banks to come forth and try to maintain the oil prices.

Technical analysis:
Though the overall trend in Oil is Southwards, a reversal pattern's been observed and knowing that the current low is a multiyear low there may be optimism around buyers.

The reversal will be confirmed if the chart manages to record one higher low. Anyways due to the downwards momentum and last week's sighted Death cross, sellers may find suitable entries around 49.42 - 52.16 by testing the declining trendline.

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