It’s true! It really happened. Producers had to pay Traders to take the oil off their hands. This has never happened before for an oil futures contract. The coronavirus outbreak has badly hurt the global oil demand while there is no storage enough of the oil itself! Sea storage reached a new record level for crude oil.
Source MarineTraffic
WTI May’s contract dropped more than 100% hitting at -$37.63 per barrel while June’s contract reached $20 area. This major event led most stock markets to the downfall. All main Asian Indices closed in red as well as EU markets move in negative territory. GER30 (DAX) is consolidating between 38.2 to 50% Fibonacci levels while ABCD pattern has not been yet canceled. UK100 (FTSE) has unstable price action behavior however it’s still moving above 20SMA.
GER30 daily chart
UK100 daily chart
The US pre-trading session follows the same bearish bias as SP500 futures are dropping more than 1%. Coca Cola company announced that it had 8.6billion revenue for the 1st quarter of 2020 which remains above the expectations. Also, Netflix is expected to announce a big surge in its subscriptions. Worth mentioning that FANG stocks recorded new highs. NAS100 (Nasdaq) had almost recovered the 80% of recent losses while its currently in a corrective mode.
NAS100 daily chart
112 earning including major stocks as Chipotle Mexican Grill, Netflix, Philip Morris International, Texas Instruments and more.
Checking the ZuluTrade’s Traders Sentiment, the community is buying USDJPY while is selling EURUSD, USDCHF, and GBPUSD.
In focus today (economic calendar):
Canada – Retail Sales (MoM) (Feb)
Disclaimer
The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.