Crude oil - Bearish fundamentals with bullish technicals
Oil demand forecasts are down with the International Energy Agency last week lowering its demand forecast for this quarter. That’s the first time in over 10 years that the agency is forecasting lower demand. Therefore the price of oil has been going down since the beginning of the year.
The International Energy Agency (IEA) said last week the virus was set to cause oil demand to fall by 435,000 barrels per day (bpd) year-on-year in the first quarter, in what would be the first quarterly drop since the financial crisis in 2009.
On the bright side:
Oil prices currently remain low as energy traders may have been overly optimistic as to the crude demand impact of the coronavirus, and in fading optimism that OPEC + will come through with deeper production cuts in March
Although the negativity, the technicals are showing that the price is setting a double bottom reversal pattern. If crude oil inventories later this week is positive, that would set a target towards the Weekly R1. On the other hand, a negative outcome of the event might push the price back towards the 50$ psychological level, making the price stay within a range.
The International Energy Agency (IEA) said last week the virus was set to cause oil demand to fall by 435,000 barrels per day (bpd) year-on-year in the first quarter, in what would be the first quarterly drop since the financial crisis in 2009.
On the bright side:
Oil prices currently remain low as energy traders may have been overly optimistic as to the crude demand impact of the coronavirus, and in fading optimism that OPEC + will come through with deeper production cuts in March
Although the negativity, the technicals are showing that the price is setting a double bottom reversal pattern. If crude oil inventories later this week is positive, that would set a target towards the Weekly R1. On the other hand, a negative outcome of the event might push the price back towards the 50$ psychological level, making the price stay within a range.
Comentarios:
The entry order at the 51.20$ (38.2% fib retracement) is so far on profit. SL is now at break even.
Operación cerrada: objetivo alcanzado:
TP1@ Weekly R1 is reached and 80% of the position is closed. TP2 is at 55$