Black Gold has been on the downtrend for the past week, the reason behind this sharp drop is the coronavarious that is been affecting the majority of the industries out there. The demand for oil is been expected to drop to 150.000 less barrels per day in 2020 compare to 2019. This facts are the main reason why the price has seen such a huge downward movement. This analysis is expecting the price of oil to rebound around $50 as it tried to penetrate that area several times and is currently trading around $51 .
According to technicals we can see a clear inverted hammer formation and the market show a possible retracement near the 0.718 fib. We should keep an eye before entering for a buy, the market may try to retest the $50 are again before it start its upward movement.
If it break below $48 this analysis is invalid !
According to technicals we can see a clear inverted hammer formation and the market show a possible retracement near the 0.718 fib. We should keep an eye before entering for a buy, the market may try to retest the $50 are again before it start its upward movement.
If it break below $48 this analysis is invalid !