Although the demand for crude oil is down due to the COVID-19 pandemic, staying below $30 a barrel is temporary in my opinion. As you can see in the daily chart above, crude oil is extremely oversold according to RSI, along with an impending bullish MACD crossover. As I write this, crude is down 4.28%. Well it might take a while to regain highs of 2019 and even 2020, from a risk perspective, going long here seems like the way to go. Also oil has been down due to Saudi cutting oils prices to take aim at Russia, they can reverse course at any moment which would likely send the price skyrocketing. Do your do diligence before investing.
Disclaimer: I am not a licensed finance professional. This blog is for educational purposes only and not to be construed as financial advice. Any trades you make are your own decision.
Until next time. Happy Trading.
UPDATE: I am long a short put spread 17 days out, sold a 14P, long a 14.5P for a credit of .11($110) less commission.
2nd UPDATE: closed out of the above put spread. Bought back the spread for .04 plus commission.
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