09.04.202009:19 Forex Analysis & Reviews: Oil rose

Good afternoon, dear traders!

Here is my analysis for oil.

Last night, Russia announced that it is ready to reduce oil production by 14% (up to 1.6 million barrels per day). On this news, oil quotes jumped by 10%, from $ 23 to $ 25:

It seems that nothing will be able to restrain the explosive growth of oil quotes. However, it's not that simple.

The meeting of the energy ministers of the G20 countries will take place on Friday at 11:00 London time. Brazil, Argentina, Canada, Egypt, Colombia, Indonesia, Great Britain, Norway, USA and Trinidad and Tobago were also invited, but not all have confirmed their participation. None of the Trump administration will be present on the online call on Friday.

Moscow expects more significant contributions from US other than what President Donald Trump is prepared to make.

Trump said that during the negotiations with Russia and Saudi Arabia, he did not agree to reduce oil production in the US.

Thus, many analysts are skeptical of the overly positive results of this virtual OPEC meeting. As there are many countries, there will be many disagreements and many intrigues.

Against this background, I recommend opening short-term positions in the next two days. Moreover, there are also technical reasons to consider:

In the framework of the "stop hunting" system, "debts" on US oil futures remain at the level of $ 23 per barrel:

In most cases, such areas undergo either a false breakdown or a true breakdown, especially in situations such as now.

Thus, I recommend working from short initiatives within the framework of the classic "three-wave" pattern, one of which is shown in the chart above.

The take profit level on US oil futures is $ 23.3-23.

You can open long positions after the false breakdown of $23.

Good luck in trading and control your risks.