WTI 10/5/2020 (MIDAZ TRADING STRATEGIES)
USOILLast week oil continues it rally higher due to optimism of re-opening of economy.
We do not view that re-opening will boost the price of oil that quickly. it will be a slow process.
Oil has start the consolidating phase , price should range between the 'Blue' channel.
The red line is where we believe oil should be priced at this moment.
Last week Goldman has forecast price level to be at $25, but did not expect the rally to be this quick.
There is something similar playing out in the oil and gas sector. Energy stocks have made huge gains since March, even as the market remains horribly depressed. And, as mentioned, oil prices have rallied, despite storage levels continuing to fill up. Sub-$30 WTI is terrible for the oil industry no matter how you slice it, but the sharp price increases from just two weeks ago are hard to ignore.
“We believe that the current euphoria on the oil market is premature
Something to note of is that China as a big consumer of petroleum his increase it exports volume due to backlog orders from previous months.
If there is any enthusiasm that cause the price to rally up nearing to sub $30 mark we would call for a short.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.