Midterm View on OIL - Attack on the largest processing facility.

Fundamentals: Crude Oil has always been the prime choice of traders when it comes to geopolitics : The commodity soared in response to an aggressive drone attack on a Saudi Arabian oil processing facility, whipping 5.7 million barrels of daily crude production or 50% of the kingdom’s oil output.Yemen’s Houthi rebels claimed responsibility for the attack, but the U.S. has blamed Iran with Secretary of State Mike Pompeo tweeting Saturday Iran has launched an “unprecedented attack on the world’s energy supply.”President Trump said there is reason to believe the U.S. knows the culprit and is “locked and loaded,” while waiting to get the verification from the kingdom to proceed.

Trade Explanation:
-Strong Supply Level broken upward and tested back as a Support Zone.
- 60$ per barrel is a key fundamental and institutional price (Largely the level where most companies are breakeven or barely netting profits).
- First RSI oversold signal confirming the supply level where there might be downside pressure.
- Huge daily traded volume increase.

Trade closed: stop reached

Comment:

Buying Back some barrels as the commodity rejected at the new demand level.

Comment:

The new Support Level is about to be broken downside, with a weak Bullish hold-up. The current case present an excellent BUY opportunity, riskier but with a huge profit potential. In another hand, a safer play would be buying at the old support zone which still appears to be a magnet with the actual geopolitical crisis.