- Oil prices have re-integrated its 1987 to 1999 range pattern from 10 to 22 USD.
- Oil prices tend to rebound 63% of its previous downside trend (as shown on the chart)
- Coronavirus crisis will increase world debt / GDP and will probably cause an important world recession.
When currencies are devaluated by increasing debt level, hard assets (Precious metals, Oil , etc...) are a good option to protect assets value.
As I would advise you buy Gold , it is good to realise that Oil prices are currently undervalued.
- Under a certain price lots of companies cannot make profits. It can lead to production reductions and bankruptcies in the Oil sector.
For thoses reasons, I anticipate buy pressure of Oil prices ti increase and the price to go up again.
TARGET 44.5 - 47.5