WTI crude oil futures which shockingly touched below-zero level is around @ $40. It's been hovering since mid-June, creating a famous triangular consolidation pattern. Either way it can go I believe WTI is more likely to see downside pressure at least before the end of July (maybe before the end of this week - July 24).
Entry: Market price (I would prefer $41 or near to manage risks, but a safer bet is to enter after the lower tr
Stop: $41.5
Target $32
P/L ratio: 8~9 depending on actual entry price
Speculation rationales
1. Near-end of consolidation
2. OPEC's positive view on future demand in 2021 (www.worldoil.com/new...virus-levels-in-2021) which announced last week.
==> They will break their oil supply-cut agreement and sell crude oil when its price is being stabilised.
3. End of equity-driven risk-on sentiment: 2Q earnings call will bring reality check to investors. People has shown massive usage on IT services but their spending not increased linearly (See Netflix 2Q earnings, new subscribers were much less then expected), which means giant IT companies' top line growth increase would be limited while their cost just increased
4. Negative outlook on macroeconomies: Big retailers like Brooks Brothers have filed Chapter 11. SMEs should definitely be worse than giants. More layoffs, higher unemployment, less income, less spending, less growth. Central banks and Governments of course would commence another stimulus package but it's only after another correction.
Entry: Market price (I would prefer $41 or near to manage risks, but a safer bet is to enter after the lower tr
Stop: $41.5
Target $32
P/L ratio: 8~9 depending on actual entry price
Speculation rationales
1. Near-end of consolidation
2. OPEC's positive view on future demand in 2021 (www.worldoil.com/new...virus-levels-in-2021) which announced last week.
==> They will break their oil supply-cut agreement and sell crude oil when its price is being stabilised.
3. End of equity-driven risk-on sentiment: 2Q earnings call will bring reality check to investors. People has shown massive usage on IT services but their spending not increased linearly (See Netflix 2Q earnings, new subscribers were much less then expected), which means giant IT companies' top line growth increase would be limited while their cost just increased
4. Negative outlook on macroeconomies: Big retailers like Brooks Brothers have filed Chapter 11. SMEs should definitely be worse than giants. More layoffs, higher unemployment, less income, less spending, less growth. Central banks and Governments of course would commence another stimulus package but it's only after another correction.