Intraday: Bearish
Technical Analysis
Preference: A Sell position is envisaged if price trades below 24.19 with take profit at 23.3.0
Alternative scenario:
Buy position is envisaged if price trades above 25.81 with take profit at 26.47
Fundamentals:
No major economic data expected today
Comment: The commodity has been on a downward spiral. This because the pandemic and destabilized the economy and the demand for oil is at a record low, yesterday WTI futures saw her price for oil go as low as negative 40. We could attribute that to the cost of oil storage, there is no demand for oil and inventories are piling up so is the cost of storage for oil. As at yesterday alot of the major oil player were considering reducing supply instead of waiting till the May date as was agreed upon by OPEC and the USA. Analysts see oil still falling lower to around $19- $20 before we see a rebound.
Analysis: SCRUM Team