Two different scenarios here.
Looking at a technical perspective there is a head and shoulders formation.
Crude is currently trading at the shoulder line.
Looking at the supply and demand issue we already know supply and storage is at maximum capacity.
However with the US planning on re-opening a number of states in the near future along with the rest of the world, demand may also pick up over the coming weeks.
If we are over the corona-virus pandemic markets will begin to price in a market recovery.
We are waiting to see if we see a rejection on this shoulder line or a breakout.
We plan to buy the breakout once we have seen a re-test on that support level.
Keep in mind a rejection from this resistance zone will support a sell targeting a break below the neck line.
Looking at a technical perspective there is a head and shoulders formation.
Crude is currently trading at the shoulder line.
Looking at the supply and demand issue we already know supply and storage is at maximum capacity.
However with the US planning on re-opening a number of states in the near future along with the rest of the world, demand may also pick up over the coming weeks.
If we are over the corona-virus pandemic markets will begin to price in a market recovery.
We are waiting to see if we see a rejection on this shoulder line or a breakout.
We plan to buy the breakout once we have seen a re-test on that support level.
Keep in mind a rejection from this resistance zone will support a sell targeting a break below the neck line.