The second pandemic wave prevents oil from growing

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