Daily Alert – Wednesday 22nd April 2020: Oil drops another 40%, continues fall today

Mark NugentApril 2020, Daily Alert

Daily Alert – Wednesday 22nd April 2020: Oil drops another 40%, continues fall today

It was a tumultuous day for oil yesterday. We saw a 40% drop on a price that had already lost two thirds of its value this year. WTI spot now sits at USD12.7/bbl as of 1030 BST. The June contract sits at USD10.9/bbl. Yesterday’s short trades yielded around 14% gain on capital. These events do not happen often but by looking at the charts every day and doing a bit of reading we remain well placed to take advantage when they do.

I am not keen to overplay the situation and will only enter oil short again this week if we see a rally.

As per last week, forex is reasonably predictable on the weekly chart, but choppiness is making trading on the daily chart difficult.

Bank of America is forecasting GOLD to rise to USD3000/oz from its current level of USD1700/oz. That will be one to watch.

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