If you have shorted oil, you better read this
Hi Guys,
I am seeing many traders, who shorted oil as they were thinking, it is overvalued, and will come down, especially because of the COVID-19.
Look, at first don't try to trade according to news, because most of small traders learn the news, after they were priced in.
Anyway, look at my previous analysis, i shared it when the prices were at 10-20 USD, showing that we are going to 48 USD in few weeks. I am still holding my longs of course. But i am worried about the traders who has taken short positions below 40 USD.
In this chart, i tried to show you the trend changes in USOIL. As you see they are always bloody. OIL doesn't change its direction, before making sudden big spikes. So as long as prices keep increasing slowly as nowadays, there won't be any major pullbacks.
So if you are still holding short positions, expect a sudden spike to at least 48 USD. And then trend may change. But if price keeps going slowly, and passes that levels without making a sudden spike, that means, we will still have room to increase.
I am seeing many traders, who shorted oil as they were thinking, it is overvalued, and will come down, especially because of the COVID-19.
Look, at first don't try to trade according to news, because most of small traders learn the news, after they were priced in.
Anyway, look at my previous analysis, i shared it when the prices were at 10-20 USD, showing that we are going to 48 USD in few weeks. I am still holding my longs of course. But i am worried about the traders who has taken short positions below 40 USD.
In this chart, i tried to show you the trend changes in USOIL. As you see they are always bloody. OIL doesn't change its direction, before making sudden big spikes. So as long as prices keep increasing slowly as nowadays, there won't be any major pullbacks.
So if you are still holding short positions, expect a sudden spike to at least 48 USD. And then trend may change. But if price keeps going slowly, and passes that levels without making a sudden spike, that means, we will still have room to increase.
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