World oil demand will rebound more slowly in 2021 than previously thought as coronavirus cases rise, OPEC said on Tuesday, adding to headwinds faced by the group and its allies in balancing the market.
Technical: The pandemic had a direct incident on oil prices, bringing the levels to a record negative value in March. After an ease on lockdowns, oil prices recovered and reached the institutional level of 40$ per barrel. Moreover, we experienced a ranging market within summer with prices bouncing between 36.00 and 44.00. Although we have an uncertainty due to the virus cases rise, the consolidation on the market represents a setup.
Beware of the strong resistance at 44.00.
Setup: Bought crude oil @41.00 with a target @50.00 and a stop @36.00 (2:1 risk reward ratio).