Crude Oil Futures
Crude oil futures in the May contract is trading lower for the 2nd consecutive session after settling last Friday in New York at 22.63 a barrel while currently trading at 22.23 down about 40 cents for the trading week continuing its bearish momentum.
Fundamentally speaking, the energy complex sold off sharply, with oil prices sinking after the Trump administration canceled its plans to buy crude oil to replenish the Strategic Petroleum Reserve (SPR). Then the energy complex extended its losses Thursday on dire predictions from the International Energy Association (IEA).
I am not involved, but I do think prices will break the $20 level as I'm certainly not recommending any bullish position as weakening demand due to the Coronavirus causing millions of Americans to work from home while not driving.
Crude oil prices are trading far below their 20 and 100-day moving average as the trend is to the downside as unleaded gasoline is right near an all-time low as that is also putting pressure on oil in the short-term. If you are short a futures contract, I would place the stop loss at 28.50 as an exit strategy as I do think $15 a barrel is a realistic number that could happen in the coming weeks ahead.
CHART STRUCTURE: POOR
Silver futures in the May contract is currently trading at 14.51 an ounce after settling last Friday in New York at 12.38 up over $2 for the trading week experiencing high volatility as prices hit an 11-year low last week. Silver has been mirroring the gold market, which is also having tremendous price swings daily. Continue reading ""Stay Home Save Lives" Drives Oil Futures Lower"