The barrel has fallen again as there is simply too much oil with a massive oversupply generated from this crisis scenario where demand has fallen, and supply has grown. The strong rebound of Friday, when the price lifted to $28, was over in just a few hours, and oil has fallen again to test the key support level at $21. In the last few hours, we have seen a rebound to $22.50, which can be considered a modest rebound in the current conditions of huge volatility. Technically the holding support zone of $20.50-$21 is now crucial. The first positive signal will only arrive if prices manage to recover and hold on to $24, as the overwhelming sentiment remains very bearish and hugely volatile.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
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© 2019 High Leverage FX - All Rights Reserved.