Crude oil futures slump on OPEC+ production cut

9 Apr 2020 recap — just when every one cheers up on a deal among Saudi Arabia, Russia and OPEC regarding production cut, crude oil futures(CL) was sold into strength and broke the support at 24.

Crude oil had a jump initially to test 28 but was quickly rejected and dropped below 24.

Volume has increased during the slump of the crude oil futures together with big spread.

Since 18 Mar 2020, crude oil futures has been stuck between a trading range 19–28. Supply is present at the upper trading range

Bias — bearish. Expect a test of the support and demand zone around 22.

Key levels — Resistance: 27–28, Support: 19–20, 22

Potential setup — look for a test of 24–25 to initiate a short position on lower timeframe.

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Disclaimer: The information in this presentation is solely for educational purpose and should not be taken as investment advice.