Given the current Trumponomics with Oil, the chances of Oil falling off of a cliff seems slim.
The 4H chart of USOIL shows a slow regression trend at the moment. However, if the trend breaks toward the top the next resistance level is at a $28.0 range.
This will happen in the likely case of US-Russia agreement of joining OPEC+ and I believe even then Oil markets will still find it hard to break that support region due to oversupply of over 20-25 MBoed (Millions of Barrels per day) that exists due to COVID-19 large scale shutdowns.
Note: Current world Oil Production is 100+ MBoed and Current consumption is 80+ MBoed. Cuts of even 5 MBoed won't do much to help the markets in the short-term.
The opportunity will be short-term play between this regression trend until a clear change in Fundamentals which will either lift it to $28.0 range or go to $14.0 on the downside as a lot of traders have pointed out looking at a very long-term scenario.
Please feel free to share your opinions and thoughts about the markets in the comments sections below.
The 4H chart of USOIL shows a slow regression trend at the moment. However, if the trend breaks toward the top the next resistance level is at a $28.0 range.
This will happen in the likely case of US-Russia agreement of joining OPEC+ and I believe even then Oil markets will still find it hard to break that support region due to oversupply of over 20-25 MBoed (Millions of Barrels per day) that exists due to COVID-19 large scale shutdowns.
Note: Current world Oil Production is 100+ MBoed and Current consumption is 80+ MBoed. Cuts of even 5 MBoed won't do much to help the markets in the short-term.
The opportunity will be short-term play between this regression trend until a clear change in Fundamentals which will either lift it to $28.0 range or go to $14.0 on the downside as a lot of traders have pointed out looking at a very long-term scenario.
Please feel free to share your opinions and thoughts about the markets in the comments sections below.
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.
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.