Crude oil is at the lowest it’s been since Nov 2019. The Coronavirus that is making its way around is contributing to the recent crazy sell-off.  The virus is spreading from central China’s city of Wuhan to other cities around the world. The world health organization is declaring this a global risk the same as SARS and MARS or worse.

Chinese health officials have lockdown cities, and ministers are advising everyone to stay in or out. Oil demand is taking a hit with supply plenty right now. The technical damage done on the chart shall remain. Any sign of getting a handle on Wuhan virus would probably induce a relief rally.

From a technical perspective, the market is in near-term support; and my analysis is that it would not sell off much more than this unless the economic impact of 2019-nCoV expands around the world at an alarming rate.  Sideways to lower price action most likely be the case here.

800-367-7290312-373-5394Series 3 Licensed

Eli Tesfaye

Senior Market Strategist
Eli started his career in the futures and options market while he was in graduate school finishing up his MBA in 2003. Eli specializes in Automatic trading strategies and systematic options trading strategies in futures market. He has been Series 3 license holder since 2005. Eli's is an avid reader, runner, and yoga practitioner.
Read More