Crude dips -12% minutes after the open but we remain bullish
|This is the crude oil futures front contract chart. You might have noticed that we opened with a 7% gap to the downside and price dipped as low as 12% during the first minutes of trading.
I remain bullish above these levels. If you notice the $25 level is a key level that buyers weren't able to break on March 20th and where bears took control dipping price below $19. At the open price dipped 12% to this exact level where it got bided to current levels (around $26.50). That's a 4.73% move up from the lows.
I believe that this gap was an overreaction to the news that the OPEC+ emergency meeting on Monday was posponed, not canceled, but postponed to Thusrday.
Canada already cut 700k bpd in output and Norway announced that it's cutting its production too this past Saturday.
For an OPEC+ deal to be reached the US must be involved in the output cut said the Saudis and Novak.
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