Short USOIL Trade Opened on the 19th of Jan, 2020

FX:USOIL   CFDs on Crude Oil (WTI)
This is a short USOIL trade which I opened on the 19th of Jan, 2020 at 59.424. I then, subsequently, opened another short position on the 23rd of Jan at 55.136.

I feel that USOIL will drop to approximately 50.000; where I hope to close the trade.

My rationale for this trade is that with the impending US Election, low oil or gas (as in gasoline) prices are a significant vote winner for the Republicans and every effort will be made to keep oil prices low during the summer of 2020. Low oil , however, has a detrimental affect on US Shale Companies.

There is a correlation between falling USOIL prices and falling JNK prices; as well as XLE or the US Energy Sector, (which is a major component of the SPX ).

Low XLE values will tend to hold the SPX back. (These are all potential trades off the back of low USOIL , and can be used as indications of which way oil is heading).

Also the trendline indicates a drop from the previous two peaks (which I have marked), and using that logic, I expect USOIL to drop to about 50.000 and hold steady there.

Comment: closed both shorts at 52.714 on the 27th of jan 2020 at 5.42pm london time

made 9.132$ on the trade


Nice trade. I saw the break of that trend as well. Everything crashes tomorrow.
supratimbarman UnknownUnicorn2689000
@UnknownUnicorn2689000, Thank you, How are you. I think something big is up (as in down) -- haha. Oil could hit the floor to 51/50 very quickly. The SPX is about to correct to the mean.
@supratimbarman, I still think we are hitting 3600 SPX before the end of the year, but a pull back has been building regardless of the headlines.
supratimbarman UnknownUnicorn2689000
@UnknownUnicorn2689000, Totally agree with you.
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