Oil: Time to Short? WTI Set to Plunge Over 10%
Hey Realistic Traders, Is Oil About to Crash? Let’s Dive In....
What's the cause of sudden drop in oil prices?
U.S. President Donald Trump has pledged strong support for the oil and gas industry, aiming to streamline permits, boost domestic production, and expand drilling on federal lands. He has also criticized renewable energy subsidies and pushed for increased natural gas exports.
Aligned with Trump’s stance, the U.S. Energy Information Administration (EIA) has raised its 2023 oil production forecast to 13.23 million barrels per day, surpassing last year’s record of 12.93 million. Global output is also expected to increase, while weaker oil demand from China, driven by slowing economic growth, adds further downward pressure.
These policies and projections support the assumption of lower oil prices ahead
How much further could they decline?, Let's analyze it using technical analysis!
On the daily timeframe,
USOIL is in a bearish continuation phase, potentially entering wave 3 of the trend. It has also broken out of a head-and-shoulders pattern that developed over the past 60+ days, signaling the end of a consolidation phase.
This breakout, paired with a bearish marubozu candlestick, strengthens the case for a continued downtrend. Adding to this, the MACD indicator has confirmed a bearish crossover, providing further confirmation of downward momentum.
With these signals aligned, we project a potential drop toward the first target of $60.51, and possibly even further to the secondary target of $57.80
This outlook remains valid as long as the price holds above the stop-loss level at $73.
Support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below.
Disclaimer: "Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on Oil.
What's the cause of sudden drop in oil prices?
U.S. President Donald Trump has pledged strong support for the oil and gas industry, aiming to streamline permits, boost domestic production, and expand drilling on federal lands. He has also criticized renewable energy subsidies and pushed for increased natural gas exports.
Aligned with Trump’s stance, the U.S. Energy Information Administration (EIA) has raised its 2023 oil production forecast to 13.23 million barrels per day, surpassing last year’s record of 12.93 million. Global output is also expected to increase, while weaker oil demand from China, driven by slowing economic growth, adds further downward pressure.
These policies and projections support the assumption of lower oil prices ahead
How much further could they decline?, Let's analyze it using technical analysis!
On the daily timeframe,
USOIL is in a bearish continuation phase, potentially entering wave 3 of the trend. It has also broken out of a head-and-shoulders pattern that developed over the past 60+ days, signaling the end of a consolidation phase.This breakout, paired with a bearish marubozu candlestick, strengthens the case for a continued downtrend. Adding to this, the MACD indicator has confirmed a bearish crossover, providing further confirmation of downward momentum.
With these signals aligned, we project a potential drop toward the first target of $60.51, and possibly even further to the secondary target of $57.80
This outlook remains valid as long as the price holds above the stop-loss level at $73.
Support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below.
Disclaimer: "Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on Oil.
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