Commodities

On 22^nd Feb 2020, I wrote, “If we look at the weekly chart of NY Crude we can see that the crude is largely trading in a range of 50 -64 and Brent are largely trading in the range of 52-66 USD. Unless crude oil break above or below this channel crude will stay in this trading range.”

Subsequently Crude Oil broke the lower support of the channel and fell to 25 USD a barrel. In the last 20 days’ crude oil saw a fall of 60%.  If we look at the given chart of crude oil we can see that long term support for crude exists at 20 USD. I think crude will find its feet at these levels.

Also, crude oil will now find it difficult to move above 50 USD a barrel and the long term range for crude oil is now between 20 to 50 USD per barrel. 

On the same day,  I wrote, “I believe that silver is on the verge of a breakout and the target for silver will be 27 USD and a further 35 USD in the next 5 years.”

I have been completely proven wrong in my call on silver. Silver made a top on that day and since then has fallen 33% to 12 USD and ounce. The fall in silver was baffling to say the least. Silver has behaved more like industrial metals instead of precious metals.  If we look at the given chart of silver it may fall to 8 USD but I will refrain from making any call on silver as of now.