Oil Outlook: Trade It But Don't Own It
Oil colour Markets Are Rising
The oil price warfare and COVID-19 pandemic sure enough put a hurting on the oil colour markets. The price of WTI and Brent fell to multi-year lows counted in terms of decades showing simply how unstable the market was. Not only was supply high, product and capacity were near record levels while ask only nonexistent. Now the inunct price is rebounding and the charts look good for that trend to continue. The caveat is that resistance to higher prices lurks in the shadows promising to cap gains in the not-too distant future day. With the outlook for demand still so tepid, I look embrocate prices to remain low regardless of what they do now which is why I say business deal information technology (oil prices) but don't own IT (as in oil stocks, not for long anyway).
The chart of WTI oil color looks pretty bullish, for the most part collect to the long-term bottom and the fact of global post-pandemic economic reopening.You know, what they call pent dormie demand. The sleeper mustiness awaken sympathetic of thing. The economy was shut down and that put a hurt on the postulate factor. Today the economy is reopening and demand is backwards. Go figure. Anyway, the tendency is up and a continuation signal is in the fashioning. The signal I'm talking roughly is a pleasant little bullish flag within a clear in the lead trend. The fleur-de-lis should lead prices up to the $44/$45 level leastwise with a unplanned of intermit through to new high highs.
The risk though, is that in the U.S. at to the lowest degree, the COVID-19 pandemic is furthermost from over. A second wave of shut-downs will surely librate on demand and oil prices with it. That aforementioned, there is a within reason strong discipline target for resistance at the $44/$45 level that could easily stay fresh prices in check. The $44/$45 level is potentially reinforced because IT is the bottom of a previous range that was broken with vigor archaean this year. American Samoa such, it is the distinguish resistance mark and will signify the difference between higher prices and a retest of the recent lows. I do not expect WTI to come along beyond this manoeuver significantly, I also do not truly expect another correction to be as deep as the past low but you ne'er know.
Source: https://www.binaryoptions.net/oil-outlook-trade-it-but-dont-own-it/
Posted by: hendersonfrosigh.blogspot.com
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