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Crude Oil

Market Opportunities - 18/09/2020

18 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:

  • Oil prices rose more than 2% on Thursday, turning positive as OPEC and its allies said the producer group would crack down on countries that failed to comply with output cuts. The US Dollar weakness also helped Crude Oil to go higher. But the major opinion on the markets is that this increase of the Oil is temporary and the bearish sentiment on Crude oil price still stands.
  • OPEC and the International Energy Agency delivered bad news for the oil market this week. Both authorities revised their oil demand forecasts for this year, and both revised them downwards. The International Energy Agency now expects 2020 oil demand to be 8.4 million bpd lower than it was a year ago, and OPEC sees it contracting by 9.5 million bpd. That’s up from 8.1 million bpd and 9.1 million bpd, respectively, that was forecast just a month ago.
  • On the flip side, the Oil supply is rising despite the fact that a resurgence in Covid-19 cases in some countries could further dampen oil demand. Covid-19 cases have been rising in many European countries, total infections in India, the world's second biggest importer, have passed 5 million, and new cases are on the rise in some U.S. states, threatening to crash oil demand in coming months.
  • Due to increasing worries about Crude oil demand, Saudi Arabia and Iraq last week both decreased the selling price for October for Asia and the US markets, making additional pressure on the current market price going down.
  • 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.

Crude Oil, September 18, 2020
Current Price: 41.63

Crude Oil

Weekly

Trend direction

DOWN

Resistance 3

49.64

Resistance 2

46.97

Resistance 1

44.30

Support 1

38.96

Support 2

36.29

Support 3

33.62

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 $

-8,010.00

-5,340.00

-2,670.00

2,670.00

5,340.00

8,010.00

Profit or loss in €*

-6,757.78

-4,505.19

-2,252.59

2,252.59

4,505.19

6,757.78

Profit or loss in £**

-6,169.13

-4,112.75

-2,056.38

2,056.38

4,112.75

6,169.13

Profit or loss in C$

-10,538.28

-7,025.52

-3,512.76

3,512.76

7,025.52

10,538.28

* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 08:30 (GMT+1) 18/09/2020
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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