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Crude Oil

Market Opportunities - 23/02/2021

23 February, 2021

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 weekly uptrend opportunity based On 1.00 Lot Calculation:

  • ANALYSTS REMAIN BULLISH ON OIL PRICES: Crude oil trades above the mark of $60 as Goldman Sachs predicted Brent oil prices could advance $70 a barrel (Crude oil~$67) in the second quarter (Q2). They see Brent oil at $75 in Q3 (Crude Oil ~ $72). Morgan Stanley sees Brent oil at 70 in Q3 (Crude Oil ~ $67). Big banks in the US, including Goldman Sachs and Morgan Stanley, expect the oil demand to surpass the oil supply in the coming period to drain the inventories glut (oil excess) built up during the Covid-19 pandemic by the summer.
  • GLOBAL OIL STOCKPILES CONTINUED TO FALL: In addition, US oil inventories fell last week by 7.26 million barrels to stay at the lowest in almost 12 months. The Chinese oil inventories are at its lowest in a year.
  • US Stimulus to boost the US economy and therefore increase oil demand (Biden asks for $1.9 trillion, Treasury Secretary Janet Yellen recommends to “ACT BIG”, referring to the amount of fiscal stimulus).
  • Covid-19 Vaccine Rollout across the world has helped the sentiment and improved beliefs that the pandemic could end by the end of this year. Meanwhile, the numbers of new daily covid-19 cases continued to fall across many countries in the world, including the U.S. and U.K., which increases beliefs that economies will open at bigger scale in the coming period.

Crude Oil, February 23, 2021
Current Price: 61.12

Crude Oil

Weekly

Trend direction

UP

Resistance 3

65.00

Resistance 2

64.50

Resistance 1

64.00

Support 1

58.50

Support 2

58.00

Support 3

57.50

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

Crude Oil

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

3,883.00

3,383.00

2,883.00

-2,617.00

-3,117.00

-3,617.00

Profit or loss in €**

3,196.49

2,784.89

2,373.29

-2,154.32

-2,565.92

-2,977.52

Profit or loss in £**

2,757.30

2,402.26

2,047.21

-1,858.32

-2,213.37

-2,568.42

Profit or loss in C$**

4,897.39

4,266.77

3,636.15

-3,300.67

-3,931.29

-4,561.91

* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 15.27 a.m.(GMT) 23/02/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details

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