I just signed up for this today so I have to see what it takes to post charts if I can, but for those that know TA, if you look at the monthly interval chart of the continuous futures contract, all the data from the $147 high in July of '08 until now makes a very large and very nice bullish wedge formation. The last test of the upper line of the wedge occured in Oct '18 at 76.90. The lower line was tested at around 21.68 on the 18th this month. That line was broken twice but overall it has shown some decent support.
Looking at a daily interval chart, we just a little earlier today tested the 62% retracement (at 22.50) of the range between Monday's low of 20.80 and yesterday's high of 25.24. So far we've had a decent bounce from that area.
If the candle for this month closes at or above 20.68 and we find solid support around there for the next week or two, I'll feel better about a bottom being in. I don't know how fast industry around the world is going to ramp up production once the balonavirus has run its course, but I think it's a pretty safe assumption that oil consumption will increase and fairly quickly use up whatever buildup in supply occurs during the lockdown. My understanding is that China has already been ramping back up production for over a week now. I'm not looking for quick trades, considering I think the current price is very possibly the last best opportunity ever to buy oil, so wherever oil should go in the short-term, there isn't any other sector I feel more confident in than this one for supporting a "buy low, sell high" long-term investment opportunity. :)
