Search

Dave's Trading Insights: Coronavirus Spreads, Impact on World Oil Prices (issue# 1)

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


Dave's Trading Insights is brought to you by ExitPoints. Dave Register is the Chief Architect and Developer for all of ExitPoint's automated trading systems.  If you would like to learn more, please see our list of automated trading systems for futures and forex or send us an email at info@exitpoints.com.

5 views
  • Wix Facebook page

Risk Disclosure:

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and onlythose with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure:

Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.