Good day, dear traders! As you may have noticed, the main tools I work with are – these are EURUSD, gold, and oil. And while you hold profitable positions on gold according to my recommendations, I decided to update and recall the trading idea for oil, which I voiced last week. It is the oil that has now formed a confirmation of the short-term sentiment of the bears, which can drive oil under the psychologically important level of $50 per barrel.
Putin came to Saudi Arabia – on the security of oil infrastructure, which in any case will reduce the risks of new attacks. Well, the general slowdown in the world economy against the background of instability and increased macroeconomic risks puts pressure on oil prices. And everyone who is now buying black gold can hide their risks for only $50.5-50.0 per barrel of American oil. Let me also remind you that the Americans are pumping oil in increasing volumes, which will invariably lead to an increase in its reserves in the future.
In terms of technical analysis, the first good short initiative from level 55 was held this week, and now we are trading around 53. I believe that if you take this momentum for the wave "A", you can catch a rollback in the wave "C", which, as you know, is usually a powerful impulse that can lead oil to the feet of buyers and then, at least, for a false breakdown of $50.
If you are not ready to wait for a pullback, I recommend to rely on oil news days – stocks in the USA are published every Wednesday, and at this time you can sometimes ideally enter into a deal with low risks and hold positions to the desired levels.
Thank you for your attention and see you in the next reviews!
