Hi Traders,
Price found resistance around the $50 mark which can be considered a psychological level too. The rejection was large as the price of oil has been in a bullish trend ever since the hoped of a vaccine came out. The velocity of the rejection can also be thought to be in combination with the way economies are dealing with the distribution of the vaccine as well as deciding types of restrictions over the holiday season. Closer to home, it can be argued or not that the UK has handled the COVID 19 situation worse than any other nation, with even more fears arising as a new strain of the COVID 19 develops. We have also seen France shut its borders to movement from the UK. The next question to ask is who is next to shut their borders as well as potential further lockdowns to economies over the world as this new strain develops.
Looking at the price action it looks like we may be in a small range, between the two grey boxes with a rejection from the top one adding to confirmations for price to move lower.
Thanks
The Market Sniper Team
Price found resistance around the $50 mark which can be considered a psychological level too. The rejection was large as the price of oil has been in a bullish trend ever since the hoped of a vaccine came out. The velocity of the rejection can also be thought to be in combination with the way economies are dealing with the distribution of the vaccine as well as deciding types of restrictions over the holiday season. Closer to home, it can be argued or not that the UK has handled the COVID 19 situation worse than any other nation, with even more fears arising as a new strain of the COVID 19 develops. We have also seen France shut its borders to movement from the UK. The next question to ask is who is next to shut their borders as well as potential further lockdowns to economies over the world as this new strain develops.
Looking at the price action it looks like we may be in a small range, between the two grey boxes with a rejection from the top one adding to confirmations for price to move lower.
Thanks
The Market Sniper Team
