Oil slump is not only a Covid issue, but a long term bias caused by many historic fundamentals.
Since long ago we are accustomed in seeing big movements down with the same percentage of fall like the recent one.
So was this a move to buy or a definitive bearish setup?
The last part of the crash was evidently an excess of panic and so it has been recovered at a fast pace as soon as some "not so bad news" came in.
The actual area around 30-32.00 is short term resistance so we would not be surprised to see Oil staying some time in the 32-27 range. The outcome could be anything from an inverse head and shoulder to a sort of double bottom. Some scaled down long positions are possible.
The most probable next move, let's say only for risk takers, would be to see oil again in the 39 to 45 area. which is the last gap even in weekly prices and an historic range of prices.
From there on, we have no view up to now, we will need to carefully evaluate moves, volumes etc... but would not wait too long to sell...
This market can be approached with a very short term strategy or in small quantities for longer term perspectives.
Since long ago we are accustomed in seeing big movements down with the same percentage of fall like the recent one.
So was this a move to buy or a definitive bearish setup?
The last part of the crash was evidently an excess of panic and so it has been recovered at a fast pace as soon as some "not so bad news" came in.
The actual area around 30-32.00 is short term resistance so we would not be surprised to see Oil staying some time in the 32-27 range. The outcome could be anything from an inverse head and shoulder to a sort of double bottom. Some scaled down long positions are possible.
The most probable next move, let's say only for risk takers, would be to see oil again in the 39 to 45 area. which is the last gap even in weekly prices and an historic range of prices.
From there on, we have no view up to now, we will need to carefully evaluate moves, volumes etc... but would not wait too long to sell...
This market can be approached with a very short term strategy or in small quantities for longer term perspectives.