ridethepig

Oil running out of steam...

Short
TVC:USOIL   CFDs on WTI Crude Oil
A difficult call here after clearing OPEC manoeuvre. Of course the supply sacrifice was possible, but the shallow support is now completely cooked in the price. For those tracking the full OPEC moves:




Of course buyers won the highs and we made some decent gains from the latest taking of the latent 46 highs. But as this price action is showing, we have to deal with profit taking and further lockdowns coming for California and etc will not help. The theory of a revisit of $41 / $40 will cast light on the extended lockdowns, covid chapter (3) and an eventual flood on supply side one more time.

In the long term, we are back to the previous breakdown that we traded last Winter.


The macro retrace is almost over and as sellers start to form a high, it appears that late buyers are exposed and are likely to be sent backwards. The highs did not hold, to confirm the break up was rotten we need to get back below $45.

Thanks as usual for keeping the feedback coming πŸ‘ or πŸ‘Ž