The second pandemic wave prevents oil from growing

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As predicted, the second pandemic wave led to another decline of oil quotes in the market.

The earlier increase, which was observed in oil just last week, seems to be only a short consolidation of long positions, so after a pause in the movement, quotes could begin to collapse again globally.

Because of this, the best bet now are short positions in crude, following this trading idea below:

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Since the quotes form an ABC pattern in oil, with which wave A was the strong collapse in early September, the next and optimal step is to bring the quotes to a price level of $38.39, and then to a price of $ 36.3 per barrel. However, forget these targets if oil falls below $41.5.

These follow the classic and trusted Price Action and Stop Hunting strategies.

Of course, risks are high when trading in this market, but still, the right approach do give quite a decent profit.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com
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