Hope you all are doing great amid COVID-19 scare. I wish good health to you and your loved ones
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With the CORONAVIRUS scare, the biggest hit industry right now is the OIL sector due to obvious reasons. Most of the bigger countries are under lockdown and there has been very low demand of OIL right now across all sectors and all the efforts put in by US president trump to enter in talks with Saudi Arabia to check falling prices through talks have failed for now. Trump however reportedly plans to meet with top oil executives on Friday to discuss the issue in hand however looks like it is only going to help temporarily.
Now let us look at the USOIL charts (on log scale) from technical perspective and what we see is that the USOIL has formed a channel and looks like will hit the bottom of channel at ~18$ and form a bottom there (Check Circle in Red). This is also an area which is confluent with the historical support/ bounce-off zone as can be seen in the chart (green line).
My Idea is to go long exactly in the area as highlighted with a Circle (Long Zone) and earn TVC:USOILprofits with a target of ~27$ --> ~31$ --> ~65$
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