Here we have our WTI US OIL monthly chart and we can not stop asking ourselves if we are heading to a similar year 2008 situation to $40 levels as you can see in the chart above (click it for zoom view).
Some are talking about war prices wanted by the Saudis, but they deny that affirmation. But let's not talk about that and let's focus on our job which is to make money on any situation, and this one could be a good opportunity.
For that matter, below you have our Hourly Chart where we are designing a "No man's land" area in blue.
We will be waiting until this area gets broken either up (71.21), either down (63.46) (click the chart to zoom)
Currently we don't know how long it will take to see this area broken, patience will pay. We suggest to have your BUY STOP and SELL STOP orders ready in place.
As for a prediction, well, there are several factors that indicate that prices may continue going down:
- US production is high right now,
- Saudi Arabia wants to continue cutting prices for some of their customers, they said,
- Too much oil out of the ground at this present moment,
- OPEC decision.
Now let's try to have a longer view into the future,
Some countries, including Germany, France, Spain, Israel and the USA too, are already (for some time now) working on alternatives sources of energy, I guess you all know that.
With this in mind, we ask ourselves if the price of Oil will go back to its $113 average price? - We don't think so.