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Usoilforecast

Swing trade opportunity for USOIL (2 MONTH HORIZON)The current news headlines talk about the oil price war between OPEC+ and Russia. Long story short, Russia wants to punish shale oil producers from the US by increasing output. US producers have a breakeven price of 40 USD/BARREL. Saudi Arabia did not agree with Russia during during the OPEC meeting. So they announced an output increase themselves offering significant discounts to buyers. Leveraged US Shale producers themselves wil be forced to sell in the current prices by their creditors , in order to salvage any value available. High supply in combination with the coronavirus pandemic and the looming recession in the global economy lowers demand as well. In my opinion the fundamentals favor a short position as we will not see 40 USD/BARREL anytime soon. Viewing the technical aspect of the trade we see that the 40 USD/BBL resistance has broken. We have a divergence in the MACD and a clear negative trend with consecutive red bars and increasing volumes in the Weekly chart. The following 8-10 months in my opinion we will see a breach of the 25.90 USD/BBL resistance so TP of 21.15 is advised. Having a 1:2 ratio of Risk/Reward (Loss%/Gain%) the SL should be placed to 35.25 USD/BBL.
TVC:USOILShort
by nikvo1990
USOIL afraid of Corona? OPEC tries to support!USOIL trading multiyear @ lows but shown a good jumpy reversal in the week start (March 02, 20), due to the even a great engulfing has been observed. The lowes occurred due to global slow down fears. The fear is so dense that OPEC was literally forced to cut production which was seen in the major slow down in 2008 - 2009. As it's been reported that OPEC have already cut the production by 150000 BPD already but looking at the decline in the demand they can increase the cut to 600k to 1M BPD in a desperate try to maintain its prices. As well as hopes are high from the National banks to come forth and try to maintain the oil prices. Technical analysis: Though the overall trend in Oil is Southwards, a reversal pattern's been observed and knowing that the current low is a multiyear low there may be optimism around buyers. The reversal will be confirmed if the chart manages to record one higher low. Anyways due to the downwards momentum and last week's sighted Death cross, sellers may find suitable entries around 49.42 - 52.16 by testing the declining trendline. ----------------------------- Follow the channel for more strong and in-depth analysis like this. Share the love with your friends and let me what do you think, Leave a comment :) For live trading signals trials Telegram - Tradingmoore
TVC:USOILLong
by TREND-KEY