Daily Alert – Tuesday 21st April 2020: All eyes on oil as it tanks

Mark NugentApril 2020, Daily Alert

Daily Alert – Tuesday 21st April 2020: All eyes on oil as it tanks

There was some technical shenanigans yesterday as the oil futures market for May delivery approached today’s settlement day. The price whipsawed from -USD45/bbl (yes, that’s a minus) to USD35/bbl. This is not the real price for oil. That can be seen in the futures contract for June delivery which is around USD17.2/bbl as of 10am BST and falling. It was almost USD30/bbl five trading days ago.

Steve and I are both in short trades, currently at roughly 5x risk in the money.

We will be watching oil closely today. Later, I will be looking at risk sentiment. Currently sentiment is indecisive. If it turns negative I’ll be looking at trading JPY or USD against the commodity currencies.

VIP Club members can watch the video HERE