Last week was a poor performance from USOIL. Originally stretching into the 26.01 - 27.18 - 28.27 range on Friday morning, it appeared that oil may have been on a resurgence. Unfortunately, this was relatively short lived, as we saw a pitiful drop back down into the $23 area in the evening, moments before the futures contracts expired and the markets closed for the week.
Amid the COVID-19 terror, we can expect to see oil drop further throughout the week. Our first major level is 20.08, where a strong support line has been formed from a dropping wick on 18th March 2020. I shall be placing a TP on this level for 50% of my overall trade. I will leave the remaining 50% to run, and see if we can test the next support level, which would be 17.82. If oil continues to plunge, we could see unprecedented prices below $17, all the way to almost $10. However, I would like to believe that this is relatively unlikely, as industrial buyers are unlikely to want to let it fall this far. Therefore, our two main levels are:
20.08 - we could see this happen anytime between Monday and Wednesday depending on global conditions.
17.82 - this is our major range in which shorting could provide a substantial profit, accompanied with a suitable long when reaching into the right levels. This will only happen if 20.08 is CLEANLY broken, however.
20.08 is our main level for this week. Expect an initial rebound on Tuesday/Wednesday, but prepare yourselves for the possibility of sub $18 later on in the week.
Amid the COVID-19 terror, we can expect to see oil drop further throughout the week. Our first major level is 20.08, where a strong support line has been formed from a dropping wick on 18th March 2020. I shall be placing a TP on this level for 50% of my overall trade. I will leave the remaining 50% to run, and see if we can test the next support level, which would be 17.82. If oil continues to plunge, we could see unprecedented prices below $17, all the way to almost $10. However, I would like to believe that this is relatively unlikely, as industrial buyers are unlikely to want to let it fall this far. Therefore, our two main levels are:
20.08 - we could see this happen anytime between Monday and Wednesday depending on global conditions.
17.82 - this is our major range in which shorting could provide a substantial profit, accompanied with a suitable long when reaching into the right levels. This will only happen if 20.08 is CLEANLY broken, however.
20.08 is our main level for this week. Expect an initial rebound on Tuesday/Wednesday, but prepare yourselves for the possibility of sub $18 later on in the week.