New Signal: Light Crude Oil (CL) Future Price Struggling To Create a sustainable Price Bounce – Check Our New Price Targets
Crude Oil price went back and forth on Monday. The $20 price level underneath should be a support and it is a nice large round number which makes it psychologically significant. Second, the price war between Saudi Arabia and Russia continues to cause major issues and lastly, the global economy is falling off a cliff and therefor the demand for oil is going to continue to be negative. While there are technical reasons to think we may get a price bounce from current level, it seems to be unlikely when considering current reality. While most traders are bracing for the dumping of about 4 million barrels of crude oil on the market starting April 1 by Saudi Arabia and Russia, other are holding out hope that a weaker U.S. Dollar and a truce to end the price war between the Saudis and Russians will stabilize prices and lead to a massive short-covering rally. It’s hard to conceive of any reason for a rally unless Saudi Arabia and Russia agree to a truce that temporarily stops the price war and the release of millions of barrels of crude oil on the market. I would be especially interested in seeing the reaction to the $25 level, and the $27.50 as more supply and sellers are at that price level. A sustained move under $24.50 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the main bottom price level at $20-20.52, followed by the November 2001 lows at $19.44.and further lower price support levels at $17 & $15.00 level.