Technical analysis in crude oil is facing a second down to the bottom

Global recession in 2020 is a foregone conclusion. The global economy has suffered from both supply and demand shocks. The trend of the epidemic is not clear, and the global economy is facing great uncertainty.

Fundamental analysis

Global energy demand is down about 30% and energy companies are slashing spending, cutting thousands of jobs and shutting down production to offset the global oversupply. In the past few weeks, although consumption has picked up slightly, the oversupply of crude oil is expected to last for months or even years.

Technical analysis

On the daily chart, the crude oil price has risen to $25 from the previous low of $7, and the rebound is close to 85% compared with the high of $30 in March and April. $30 is an important resistance to the rise of crude oil price. If it is under pressure here, it is likely that crude oil will have a second bottom exploration, and the price will reverse and go down, testing the previous low of $15.

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On the 30 minute chart, the price is under resistance of the previous high $26, and the direction of the price is the same as that of the daily chart level.

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Trading suggestion:
Make short position at current price $26, profit target $23.