The oil market looks like it is going to make a failed head and shoulder pattern.
Normally, I would wait until it breaks the right shoulder to get confirmation of this. That would be a weekly close above $65. But mass panic over the coronavirus has caused such a wonderful buying opportunity that I can not let it pass me by.
By all indications, it appears the virus has peaked in terms of infections in China. Manufacturers are beginning to resume their operations in mainland China.
As this is happening, the bureaucrats at the CDC are causing a panic which is setting off the algo’s to sell.
Bureaucrats are risk adverse. ‘Better be safe than sorry’ is taken to the extreme. Yes the coronavirus has disrupted demand. But the worst appears to be over. As speculators, you should look to the future.