Tips for traders, 9 March 2021
Crude oil has been a very prominent commodity in watchlists, having risen from its plunge a year ago due to COVID-19, Saudi Arabia’s dispute with Russia and the USA and travel industry turmoil.
It had forced fund managers to sell at whatever price people would settle their contracts. Futures then dropped to record lows below $0.
A year later, more and more economies are opening globally, making demand climb back very close to where it was a year ago. This has also made the price of crude oil go up to an annual high at around $60-70.
From a technical point of view, the price climbed slowly from around $30 level to the current area above $60. With the recent abundance of crude oil in the USA, the price was pressured somewhat. However, with price action indicating no lower low and more higher highs recently, the trend remains the same. Buying at the current high might not be a wise choice, but waiting for a clear retracement followed by confirmation could help traders to decide later.