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SCO

Oil Price Prediction for next weekThe measured move of the head and shoulders pattern goes to $15. I expect the recent low of $20 to be retested. If that support breaks, then $15 is the next support. Oil is facing a demand issue more than anything. 100 million bpd global production and the demand has been cut by estimates around 30%. Which makes sense since about a third of the world is under lockdown. So 30M bpd minus the 10-15M bpd cuts still leaves us with an excess of 15-20M bpd. This excess will have to be stored until capacity is reached, sold at dirt cheap prices, and burned if necessary. The recent pump was shorts covering and longs speculating on the oil deal Trump tweeted was going to happen on Monday. It has now been postponed to Thursday the 9th. The price stopped perfectly at $29 resistance. I think price will be rejected and go down. Negative sentiment was thrown into the mix recently due to SA and Russia accusing eachother of causing the price crash. Trump calling OPEC an illegal cartel earlier today certainly doesn't help. All my opinion. Short-biased.
FX:USOILShort
by OptiPulse
3
Russia & Saudi deal on Monday = green light for marketsSCO is at a critical point right now. It seems that the large H&S has played out and quickly retreated after Trump tweeted about a potential deal between Saudi and Russia to cut oil production by 15 million barrels. No one knows exactly what the outcome of the OPEC talk occurring next Monday is going to be. If the plan falls through and political tensions escalate, then SCO will bounce hard. The demand for crude is very low and the supply keeps increasing! If the deal fails, and the important support level of $17.50 to $19.00 breaks, then expect major downside. It could go either direction Monday. Bitcoin and traditional markets are also at critical points based on technicals. My gut is telling me Russia might endure so US and Saudi experience more pain. Of course don't trade off my gut, I could be completely wrong! GLTA.
AMEX:SCOLong
by OptiPulse
3
Long Oil and it might seem crazy but here's whyThe big picture shows continued bullish momentum, despite forming a clear H&S over last few sessions. The lynch pin in this whole situation was the inability to break MY neckline. Although crude does seem to be exhausted I think it had to take the beating today in order to make a run and have a chance at a breakout above 67. I would personally recommend a fairly tight stop in case things unravel in the blink of an eye, which crude can, but I think the bullish momentum will resume. I strongly believe the bears took advantage of the break the bulls needed to catch there breath, but the batteries have been recharged. I have a 2/5 position and will save some powder for a false break (bear trap) and reload with a lower avg share price. Ill make the call of 70-73 over next few quarters. Peak production season and driving season is here upon us. Dynamics are changing and have changed drastically now that USA has taken on a very different role as a supplier. Crude has one more leg up in my opinion, but it is still anyone's game. Best of luck and follow me for updates for trades. Sidenote: my strategy is simple, focus on a few stocks that show enough price action to warrant the time invested in doing the analysis, and stay on top of them. Usually its only 2-3 stocks/etfs. I don't kill it every trade and like any good trader I make bad calls and lose, but overall I do make money. I welcome contrarian views, as a part of my strategy I try to exhaust every angle to disprove my hypothesis or consensus, when I finally cant I make my move. Sometimes I miss the window and have to sit on the sideline to let the swing play out, but a good trader knows that sometimes sitting cash is the most prudent move. GLTA
TVC:USOILLong
by therancher