Daily support at 10.84. Entry near 11.00, TP at 12.20, Cut at 10.80
Gap down was brought about by the news of new issuance of common stock of which $100M has been subscribed.
This can be a buy on news trade given that the stock has been down for past 2 days - most probably sold by insiders.
Entry short at 0.645 - 0.675, TP at 0.61
Possible bullish comments by RBA Gov. Rob Lowe for a quick rally up but catalyst for the movement down to 0.61 will still be COVID19 and impact of recent crisis
Short 58.00-58.50 TP 54.00
58.00 level is confluence of fibonacci numbers - 23.6, 38.2 and 61.8. It is a role reversal resistance as well.
- Corona Virus fears
- Indecisive OPEC and OPEC+ supply cuts
- US continuous production of oil
Headwinds to Short Position:
- Continuing Libyan conflict
- Any Middle East...
Short 73.4 or 74, TP 71.7 to 69.00
- Coronavirus global epidemic affecting China growth and Global growth
- Uncertainty of China fulfilling her phase 1 trade deal with US
- Phase 2 deal won't happen until after US elections
- Rate cutting for RBA is still on the table
- Australian bush fires would have some economic impact
Short 1.3000 TP 1.26
Near-term support levels:
UK faces uncertainty forming trade deals with EU and with other nations. Moreover, BOE has hinted rate cuts before. They may just do so on their next meeting.