ridethepig | Oil Breaking Down !
Updated
There were the usual people who did not wish to engage in the sell-side before understanding what was being said from the WHO. Experts calling this a national emergency and now stronger players entering into the market with direct shocks on the demand side.
Moves likes this, which weaken important structures should if possible be played and as a matter of fact, with large sizings. What is important is that the long-term flows have kept us comfortable in the move:
The same highs we traded earlier in 2019:
Things have continued....
Sellers are better. Clearly the downside is the correct move. In this position, sellers undoubtedly have the control, but since no one knows the full extent of the penetration nor impact that the coronavirus is having on output, we will remain in uncertain waters and only a supply shock can save the buyers.
Those on the bid are praying for protection from OPEC, the silence is crippling. Sellers can consider to either play the direct breakdown through the floor (intending to clear some at 46.97 and holding the rest for the home-run). This of course has to be introduced by NY today and the securing of the break with a daily (and weekly) close. The reply from buyers would be muted, there is no contest below the file. This method is how I have characterised the entire activity by Sellers on each swing attached below.
As usual thanks so much for keeping the support coming with likes, comments, questions, charts and etc! Good luck!
Moves likes this, which weaken important structures should if possible be played and as a matter of fact, with large sizings. What is important is that the long-term flows have kept us comfortable in the move:
The same highs we traded earlier in 2019:
Things have continued....
Sellers are better. Clearly the downside is the correct move. In this position, sellers undoubtedly have the control, but since no one knows the full extent of the penetration nor impact that the coronavirus is having on output, we will remain in uncertain waters and only a supply shock can save the buyers.
Those on the bid are praying for protection from OPEC, the silence is crippling. Sellers can consider to either play the direct breakdown through the floor (intending to clear some at 46.97 and holding the rest for the home-run). This of course has to be introduced by NY today and the securing of the break with a daily (and weekly) close. The reply from buyers would be muted, there is no contest below the file. This method is how I have characterised the entire activity by Sellers on each swing attached below.
As usual thanks so much for keeping the support coming with likes, comments, questions, charts and etc! Good luck!
Note
The lows were swept but we did not (yet) get a daily close underneath. OPEC scrambling around to stop the bleeding although running out of time: Note
Note
Trading very soft Trade closed: target reached
Well done sellers!
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