FX.co ★ Do not buy oil near this level

Good afternoon, dear traders, I present to you the technical analysis of oil. So, the oil wars and the drop in hydrocarbon demand associated with the coronavirus pandemic have led to a massive drop in oil prices.

Many traders try to forecast where the bottom of the market will be? However, there is an old trading proverb - buy the bottom of the market and get the second as a gift. For April 1, this is the best joke for oil traders!

Today, I want to draw your attention to a very interesting level of American oil in the futures of the new May contract - $ 20 per barrel:

All buyers now only cost $ 20. They have nowhere else to hide risks.

The impulse of this breakdown may be today's US crude oil reserves:

This is a classic buyer trap, which usually ends with the removal of the latter.

The Long Initiative, which took place yesterday morning and was related to Trump and Putin's telephone conversations, is already completely absorbed by sellers.

Therefore, a breakdown of $ 20 is only a matter of time. There is much more oil than the world can process but there is simply nowhere to store it. The buyers' shock is just around the corner.

Have a successful trading and control the risks!