There are so many bearish newsfeed on Crude Oil at the moment.
Recently i came across a news re-published from The Wall Street Journal (WSJ) by author Amrith Ramkumar on Crude Oil WTI that it had enter into a bear market with this headlines - Concerns about an international slowdown, coupled with swelling supplies, send crude on a six-week skid
"U.S. Crude Oil Enters Bear Market Due to Global-Growth Fears"
https://www.wsj.com/articles/oil-on-track-for-bear-market-due-to-global-growth-fears-11559748511?fbclid=IwAR2PJJv_J5ob6EL2d8uQBxH7PjVSnNI2ait6Ylevq1p5doDjHzosg6d6-PQ
Bloomberg published an article on Crude Oil WTi on 1 March 2020 that "A $30 Oil Price is the real virus threat to OPEC"
https://www.bloomberg.com/opinion/articles/2020-03-01/a-30-oil-price-is-the-real-virus-threat-to-opec?fbclid=IwAR1kAsZc-q0HlV_b_6vCPJeGZOBcRF3b-odLp0_J4hZWwaTJlZ32vOYjB40
"Will we really see Negative oil demand growth this year" on 4 March 2020
https://oilprice.com/Energy/Energy-General/Will-We-Really-See-Negative-Oil-Demand-Growth-This-Year.html
"Goldman Sachs : Brent Oil Could drop to $45 in April" on 4 March 2020
https://oilprice.com/Energy/Oil-Prices/Goldman-Sachs-Brent-Oil-Could-Drop-To-45-In-April.html
"Coronavirus Panic is causing a worst case scenario for Oil" on 28 February 2020
https://oilprice.com/Energy/Energy-General/Coronavirus-Panic-Is-Causing-A-Worst-Case-Scenario-For-Oil.html
"Oil Prices in freefall as Pandemic fears grow" on 27 Februrary 2020
https://oilprice.com/Energy/Energy-General/Oil-Prices-In-Freefall-As-Pandemic-Fears-Grow.html
I use this piece of article to cross reference with the Weekly Chart Technical Analysis of Crude Oil WTi and i found that this piece of news come at the right time to accumulate long positions because the price is at the lower band of the price channel low poised for a rebound technical rally. Many traders or investors would be psychology affected by this negative news published and may take a short position on Crude Oil WTi.
I understand media always like to overhype an issue of greed and fear, a famous quote by Warren Buffet be greedy when everyone are fearful and be fearful when everyone are greedy" This quote by reowned investor Warren Buffet is not easily applicable if one lacks understanding on psychology part of the trading or investing journey.
In this article how it derive Crude Oil WTi had enter a bear market so called technical bear is using April 2018 high with a drop of more than 20% which is around 76 estimated at the time dropped to 43 recent low on 2 March 2020.
The formula is computed by using 76 X 0.2 = 60 price and below is consider a technical bear market, My concern is why it was re-published at this time and i happened to pick up this piece of newsfeed initially published in 5 June 2019, if we did not look at the dates published carefully thought it is the most recent and up to date publications with the Headlines.
Weekly Chart With Technical Analysis
Base on Technicals, Crude Oil WTi is trading at undervalue range of lower band of price channel. Lower Band of price channel makes a nice support for Crude Oil to stage a rebound to 60 (medium band of price channel) and 80 at the upper band of the price channel once Coronavirus situation improves.
It is surprising that Crude Oil did not rally based on geopolitical latest conflict between Turkey and Syria and Coronavirus overshadow the Turky and Syria geopolitical conflict.
https://www.nytimes.com/2020/03/05/world/europe/putin-erdogan-syria.html
https://www.nytimes.com/2020/02/27/world/middleeast/russia-turkey-syria-war-strikes.html?action=click&module=RelatedLinks&pgtype=Article
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.
Really Good tips and advises you have just shared. Thank you so much for taking the time to share such a piece of nice information. Looking forward for more views and ideas, Keep up the good work! best silver trading platform online .
ReplyDeleteWays & Works Consulting is an ISO 9001:2015 certified HR Consulting Firm, Manpower Recruitment and Practical Training firm career with an aim to provide value aided service to employersTop Manpower Recruitement company in india . with an in-depth understanding of their requirements. We are working as a perfect bridge between the employer and employee to fulfil their needs by placing the best suitable at place.
ReplyDeleteYou have good articles here! If anyone here looking for loan @ 2% rate in return to buy home or other financing needs, I want you to contact Mr Benjamin On 247officedept@gmail.com Also On Whats-App + 1-989-394-3740When I was introduced to Mr. Benjamin, I was entering the market as a first time buyer. Naturally,my needs were a bit different and I had loads of questions. Before he sent me my pre-approval letter, he called to speak with me about what it meant and what could change. He made himself available to me at pretty much any hour via email and texts. He was very responsive and knowledgeable. He’s also very straightforward. I explained to him what my expectations were in terms of closing time and other particulars. He said he would meet those expectations but he surpassed them. I closed so quickly my realtor and the seller of course were excited about that. But as a buyer I appreciated being walked through the process of Mr Benjamin loan offer. From pre-approval to closing- the journey was so seamless and I consider myself lucky because I’ve heard horror stories. I recommend him to anyone looking for loan. Everything was handled electronically expediently and securely
ReplyDelete