US oil recently hit its lowest price since 2002, mainly due to the drastic decline in demand
as more countries went into lockdown. What made it worse was the feud between
Russia & Saudi which drove price even lower than they both expected.
Global demand was estimated to have dropped by nearly 30mill barrels per day, whilst some
experts estimated a higher drop in demand. China is gradually getting back into business,
US and other countries are also reporting a drop in new cases & deaths. We can only assume
that economies will get back on track sooner or later.
To curb this drop in demand, OPEC & other producers (Including US) have to cut production.
The price war between Russia & The Kingdom must end in order for both countries to remain
intact.
The upcoming meeting between the producers is expected to run smoothly, which may be the
agreement that ends the bloodbath thats been happening. Its a matter of hours before we know
whats coming.
I am looking at a long position entry at the minor support that recently formed on the 4hour chart,
a stop loss at the major support of $20.06, this a price level the bears have been struggling to
drop it significantly and the bulls are keeping price at this level, anticipating good news which
we will see bulls taking over to previous of $29 and even further.
Let me know whats your thoughts regarding this logic.
as more countries went into lockdown. What made it worse was the feud between
Russia & Saudi which drove price even lower than they both expected.
Global demand was estimated to have dropped by nearly 30mill barrels per day, whilst some
experts estimated a higher drop in demand. China is gradually getting back into business,
US and other countries are also reporting a drop in new cases & deaths. We can only assume
that economies will get back on track sooner or later.
To curb this drop in demand, OPEC & other producers (Including US) have to cut production.
The price war between Russia & The Kingdom must end in order for both countries to remain
intact.
The upcoming meeting between the producers is expected to run smoothly, which may be the
agreement that ends the bloodbath thats been happening. Its a matter of hours before we know
whats coming.
I am looking at a long position entry at the minor support that recently formed on the 4hour chart,
a stop loss at the major support of $20.06, this a price level the bears have been struggling to
drop it significantly and the bulls are keeping price at this level, anticipating good news which
we will see bulls taking over to previous of $29 and even further.
Let me know whats your thoughts regarding this logic.
Trade active:
The bulls are warming up in anticipation of a good outcome, position is at 5% green so far, it would be ideal to add a trail stop at 50points whilst we await the news. Should the outcome be positive, we can adapt.
Remember money management is key, dont risk too much and avoid greed by all means necessary.
Remember money management is key, dont risk too much and avoid greed by all means necessary.
Trade closed: stop reached:
50Point trail stop hit @25.90, a neat 8.41% gain. Now we wait on the sideline in anticipation of good news.