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Crude Oil

Market Opportunities - 16/09/2020

16 September, 2020

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Crude Oil downtrend opportunity based On 1.00 Lot Calculation:

  • Crude Oil rose for a second day on Wednesday, hitting $39.6, a 10 days high, as a hurricane Sally closed U.S. offshore oil and gas production and an IEA report showed U.S. crude inventories decreased. The US Dollar weakness also helped Crude Oil to go higher, too. Major opinions on the markets are that this increase of the Oil price wouldn't stay for a long time and the downside trend will carry on.
  • Despite this 2-day price increase, the Global fears about future Oil demand stay very high. Oil producers and traders are painting a bleak picture for a recovery in global fuel demand as the Covid-19 pandemic rages on, hammering economies.
  • The International Energy Agency also reduced its forecast for oil demand this year on Tuesday, because of a cautious outlook for the economic recovery from the pandemic. That came after the Organization of the Petroleum Exporting Countries (OPEC) said it expects world oil demand to fall more sharply than earlier forecast.
  • Imports of oil in August into Japan, the world’s fourth-biggest importer of crude, fell by more than a quarter from a year earlier, official data showed on Wednesday.
  • Previously, China, the world's biggest importer of Crude oil, reported that it will decrease Oil imports in September after five straight months of increase.
  • Additional pressure on the Crude oil price came after Saudi Arabia and Iraq, both decreased selling for October price for Asia and the US.

Crude Oil, September 16, 2020
Current Price: 39.40

Crude Oil

Weekly

Trend direction

DOWN

Resistance 3

45.50

Resistance 2

43.40

Resistance 1

41.30

Support 1

37.43

Support 2

35.36

Support 3

33.29

Example of calculation base on weekly trend direction for 1.00 Lot*

Crude Oil

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

-6,100.00

-4,000.00

-1,900.00

1,970.00

4,040.00

6,110.00

Profit or loss in €*

-5,147.68

-3,375.53

-1,603.38

1,662.45

3,409.28

5,156.12

Profit or loss in £**

-4,702.44

-3,083.56

-1,464.69

1,518.66

3,114.40

4,710.14

Profit or loss in C$

-8,036.99

-5,270.16

-2,503.33

2,595.55

5,322.86

8,050.17

* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 13:40 (GMT+1) 16/09/2020
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account Manager regarding their use.
*** Please consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Senior Account Manager for more details

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