Crude oil is one of the most popular energies in the Forex market to trade as it is the base of a lot of products including gasoline, diesel, jet fuel and etc. The price depends on many facts like political, economic and so on. Here, we are going to bring the fundamental facts along with technical analysis which might help you to get some cash by trading.
CRUDE OIL Fundamental View
The crude oil price is in pressure. Investors are still worries regarding coronavirus. The coronavirus already killed 294 people in Hubei province. News reported 9056 is effected already.
Global companies have shut down their services in China and many airlines have dropped their flights to China.
China is the world’s 2nd biggest oil buyer. As China affected and shut down many companies so Oil demand dropped and oil price sent lower. Oil is stuck in demand zone but it is hard to say only OPEC production cut is not enough holding major level.
Crude Oil is holding a critical support level. It is showing the double bottom support level was at 52.00 area. The market closing price is 51.60 area. From the present level, there is a high chance to test the 50.45-50.00 area next week.
On the other hand, as 50 is the major support market may bounce some to 52.00. Breaking above 52.00 next target is 53.85 area. And finally, the oil may correction to 55.00 area. Oil may not go long if China can’t control coronavirus soon. Technically we should wait for a reversal candle from the bottom level.
Crude oil trade plan
OIL SELL LIMIT AT 53.50