The deadly Coronavirus has now spread to more than 25 countries. Here's my take on how it will impact world oil prices.
On Friday Fox Business news reported, "Oil prices slid Friday morning as the widening Wuhan coronavirus outbreak threatened to curb global demand.”
But what do the technical indicators say? The chart below shows that the March Crude Oil contract has been on a decline for several weeks.
As part of my analysis, I use the 5-day and 21-day commodity channel index indicators. Currently they are showing that crude oil is oversold and is likely near a short term swing low. Early this week, look for opportunities to buy long for a few trading days.
chart from barchart.com
Many profits and much success,
Dave
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