It is rare to see oil price drop below $30. I would consider this a good opportunity to buy oil for long-term investment both from (1) technical, and (2) fundamental reasons.
(1) technical reason
Looking at the weekly chart, the price is potentially forming a triangle. Ideally, the price should drop below $25 and bounce back.
(2) fundamental reason
The oil price drop was caused by Saudi Arabia for a political reason. With the current price level, the majority of oil fields around the world are not profitable, therefore there will be significant decrease in production in due course. Once coronavirus issue is calm down, oil price should bounce back due to demand / supply imbalance.
(1) technical reason
Looking at the weekly chart, the price is potentially forming a triangle. Ideally, the price should drop below $25 and bounce back.
(2) fundamental reason
The oil price drop was caused by Saudi Arabia for a political reason. With the current price level, the majority of oil fields around the world are not profitable, therefore there will be significant decrease in production in due course. Once coronavirus issue is calm down, oil price should bounce back due to demand / supply imbalance.
I trade forex, cryptocurrency, stock, futures mainly based on Elliott Wave principle.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
I trade forex, cryptocurrency, stock, futures mainly based on Elliott Wave principle.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.