Will Oil gap up tonight?Sundays are a great opportunity for Oil to make an easy move higher off the opening and that is exactly what investors are counting on as we head into the
4th week of selling which started Nov 7th investors have had this same hope for 20 days so far, but what if Oil opens flat? It will certainly send a message that Oil is continuing its downtrend which started June 8th and still 5 months later investors are convinced that Oil will return to $100. Remember that Oil couldn't stay at $100+ when we had the War hype, a bullish global economy, and the lowest interest rates yet investors are brainwashed into thinking that $100 Oil is possible with a contracting economy with increasing interest rates with China sick and their cold isn't going away even into 2023. Then you have Oil demand continuing to weaken to the point China cutting Dec shipments with European refineries with too much Oil also Oil production seems to be gaining from various sources. and a global recession on top of it, there are so many headwinds pushing Oil down and what if G7 cap goes by with no resistance and Oil keeps flowing? there's a large percentage built into share prices and Oil on the hope that Russia rebels shutting down Oil and yet in this global arena investors think that Oil
will survive at $100 or even $90 even after Oil is down $47 from its high. Eventually when Oil is down $65-$75 which is still an 8yr high for Oil SP will head lower along with revenues and looking back at 2022 SP huge jump up will look like a speed bump on the charts. I'm good wherever Oil goes I will trade but my trading principles would never have me buying and holding shares that are heading higher while revenues are dropping and the commodity is still freefalling heading toward the FED Dec Rate hike, I can't do that. GLTA
Look at the 10yr chart it's a great way to see the big picture. Crude oil - 2022 Data - 1983-2021 Historical - 2023 Forecast - Price - Quote - Chart (tradingeconomics.com)