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:
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