Slippery When Wet...

TVC:USOIL   CFDs on WTI Crude Oil
...Just like my girlfriend after i tell her i have made £100,000 this week trading.

76 is such a key phycological level for oil , as you can see it has been used so many times as support and resistance before and take in to note this is the monthly timeframe this makes it about as strong as it can get!

I can personally see price dropping from this 76 level, if price does drop then my next level of possible support would be 63 as shown on the chart, this also has been used as strong support and resistance in the past. The reason i think price will drop is because i can see more lockdowns coming, this will lead to nobody travelling in cars or going on holiday so there will be no need for aeroplane travel, this will lead to less demand for fuel so price will drop.

You always have to look on the other side and see what would happen if price breaks 76, If this happens then my next possible resistance level is marked on the chart at 86, for the same reasons as all the other levels it has been used as strong support and resistance before.

Let me know your thoughts, do you think we will be getting more lockdowns?