Oil prices are facing a major “bearish cliff” after weeks of surging non-stop.
NEW YORK (PRWEB) March 25, 2021
Bill Poulos, President and Co-Founder of Profits Run, shared that after oil prices saw weeks of non-stop surging they now face a major “bearish cliff.” In an Unseen Opportunity article, Oil Prices Could Crash Again, and Soon, Poulos stated, “Wall Street mostly feels good about the market’s short-term future, provided that the economic recovery stays on track. That could come to a screeching halt, however, if Covid cases continue to rise across the U.S.”
Giving insight into Covid-19 cases, lockdowns, and government intervention, Poulos shared, “As of Monday night, infections were up in over 21 states. Mutations of the virus seem to be gaining a foothold, too. White House Chief Medical Advisor Dr. Anthony Fauci blames the recent lockdown pullbacks for the Covid resurgence. But the states with the most relaxed mandates – Florida and Texas – aren’t seeing an uptick in cases. Instead, Michigan and New York are among those experiencing rising totals despite having the strictest Covid protocols in the country. Don’t be surprised if several states make another push for lockdowns in the coming weeks. The federal government might even propose additional stimulus to smooth things over.”
Poulos warned, “But perhaps the most shocking revelation today is still forming, and it’s not in yields nor tech. Oil prices are facing a major “bearish cliff” after weeks of surging non-stop. In fact, WTI Crude Oil is now teetering on the edge of the 50-day moving average (50-SMA) – a key technical trend-identifying indicator. Oil has a tendency to either consolidate, or worse, plunge after it dips beneath the 50-SMA. That’s exactly what happened last year after WTI crude crossed the 50-SMA in January. Then, in March, the pandemic took hold and drove WTI crude to near-zero. That doesn’t mean we’ll see a repeat performance from oil this time, but the conditions are somewhat similar. A far less severe drop could follow if lockdowns are put back into effect. But even if more U.S. lockdowns don’t occur, oil could still plummet. It’s sitting on key support from last week. Which, at the time, was smack-dab on the 50-SMA.”
In conclusion, Poulos stated, “The threat of an oil crash puts yet another bearish “arrow” in the “quiver” of stock market worries. It’s already relatively full. How much more pressure can investors handle? And though we won’t know the answer to that question before it’s too late, we do know that some major oil selling could be on the horizon. Ultimately putting the market at risk of a rapid, short-term dip”
Bill Poulos is an entrepreneur, published author, and financial educator. He is the president and co-founder of Profits Run, Inc. Profits Run is a financial publication firm that teaches investing principles and philosophies. Profits Run offers services and programs for every level of trader—including Rapid Income Engine, Premium Income Alert, Crypto Profit Alert, Earnings Profit Alert, Instant Options Income, and 20/30 Wealth Trader.
About Profits Run:
In 2001, Bill and Greg Poulos established Profits Run, Inc. The company is a financial publishing firm that offers different programs and services to help people become better traders while applying risk management techniques. Profit’s Run earned its name from a popular saying amongst traders, “Cut your losses and let your profits run.” Profits Run’s mission is to show people a simpler and safer way to invest.