The above chart is of WTI Crude Oil futures (July 2020 contract). All traders should move into July contracts asap because June contracts are nearing expiry this week.
Crude Oil futures maybe breaking out of their strong parabolic uptrend from the deep sell-off seen on April 21, 2020 and they can also move up till 27-28 as part of this uptrend.
There is a strong support at $19 per barrel. Traders can stay long above 19 for Target 30. Buy on corrections. A closing below 19 will create fresh selling pressure and weakness that can drag down the price till 12-13 level, where we have seen major support, and strong buying on 3 different days during April 2020.
Crude Oil Futures have done near complete liquidation or capitulation that’s possible in markets. Now, its a new Crude Oil, and the downtrend has been broken this week. Current price is near $19 per barrel, and the upside target till $30 is visible, even as part of basic recovery in demand and increase in storage space, which is likely once the US economy restarts in May-June 2020. The supply side has been damaged in this massive price correction since Jan 2020, and that could push WTI crude prices up, and in fact make it the same as Brent Crude once the WTI upward journey starts. The real target is $50 per barrel, which maybe hit by April 2021 if global economy recovers by Feb 2021.
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