WTI just recorded another record-breaking drop in a week, showing no sign of stopping even in the last trading day.
The oil price has definitely reached an extremely overbought level and it should not be any surprise to see major correction like this.
Do keep in mind that oil is still in a bull market and it's very likely that oil demand will reach another record-breaking level once travelling overseas return in the foreseeable future.
Putting the fundamental aside, when the oil market does a major correction, it is usually within a range of 20%, and guess what? We are just 1% away from 20%.
Therefore, we will resume looking for buying opportunities at the current demand level around 61 BUT keeping in mind that the short-term trend is still very bearish though extremely oversold.
Should the price rebounds, we should be able to see 66 again and eventually resuming into a bullish trend overall.
The oil price has definitely reached an extremely overbought level and it should not be any surprise to see major correction like this.
Do keep in mind that oil is still in a bull market and it's very likely that oil demand will reach another record-breaking level once travelling overseas return in the foreseeable future.
Putting the fundamental aside, when the oil market does a major correction, it is usually within a range of 20%, and guess what? We are just 1% away from 20%.
Therefore, we will resume looking for buying opportunities at the current demand level around 61 BUT keeping in mind that the short-term trend is still very bearish though extremely oversold.
Should the price rebounds, we should be able to see 66 again and eventually resuming into a bullish trend overall.
