Hello everyone, as we can see on the chart, we have been moving inside a channel for a very long time and we are at the resistance. I do think we are going to break the channel and finally get out of the bear-trend because of the following reasons:
- The economy is starting again, USA is opening states, China is opening, Europe is also opening it's economy, so all of this means that the demand will increase.
- Trump said that they are working hard to safe the oil industry, so he will help companies. Currently there are loans for small oil businesses, which aim to help the oil companies from bankruptcy.
- We have been in a bear trend from 2008 on the monthly chart, we have been making lower highs and lower lows. I am not saying we will make higher high than 2008, I am saying that we hit -30$ on the futures, we can't go any lower than that. I don't think there is any more room for us to the downside, only to the upside.
- Saudi Arabia already have cut it's production, everyone else is following, because oil is really in danger, I don't think that Saudi, USA and Russia will let oil industry die right now, especially Saudi, they need oil money in the long-run.
- USA is also not going to let oil companies dissapear in America, because otherwise Saudi Arabia will be a monopoly and they will sell oil on really high prices. This is why they need oil to go higher RIGHT NOW!
- China bought oil, this means that they also believe that oil is going to be more expensive in the following months and years.
- We are on the resistance of the channel and if we bounce right now to the downside, then we technically should hit negative numbers, which I don't think is going to happen in the near to mid future.
These are all my reasons to believe, that oil will hit 30$ this summer. Trade safe and enjoy the volatility!
- The economy is starting again, USA is opening states, China is opening, Europe is also opening it's economy, so all of this means that the demand will increase.
- Trump said that they are working hard to safe the oil industry, so he will help companies. Currently there are loans for small oil businesses, which aim to help the oil companies from bankruptcy.
- We have been in a bear trend from 2008 on the monthly chart, we have been making lower highs and lower lows. I am not saying we will make higher high than 2008, I am saying that we hit -30$ on the futures, we can't go any lower than that. I don't think there is any more room for us to the downside, only to the upside.
- Saudi Arabia already have cut it's production, everyone else is following, because oil is really in danger, I don't think that Saudi, USA and Russia will let oil industry die right now, especially Saudi, they need oil money in the long-run.
- USA is also not going to let oil companies dissapear in America, because otherwise Saudi Arabia will be a monopoly and they will sell oil on really high prices. This is why they need oil to go higher RIGHT NOW!
- China bought oil, this means that they also believe that oil is going to be more expensive in the following months and years.
- We are on the resistance of the channel and if we bounce right now to the downside, then we technically should hit negative numbers, which I don't think is going to happen in the near to mid future.
These are all my reasons to believe, that oil will hit 30$ this summer. Trade safe and enjoy the volatility!
Trade closed: target reached:
We have reached our targets perfectly, I am expecting a pullback to 30$ - 28.64$ and from there, sky is the limit!