Oil price is cheaper than water. Let's take a look how this historic crash happened?

1. OPEC's failure to reach a production reduction agreement led to a sharp fall in the world oil market.

   The global oil production capacity is mainly concentrated in OPEC countries represented by Saudi Arabia and non OPEC countries led by Russia.

   the two sides signed the production reduction agreement in order to maintain oil prices.

   The market expected the two sides to reach an agreement, but it did not. The international oil price then fell by 8%, and Saudi Arabia is also ready to start reducing prices and increasing production.

  2.  The shale oil revolution in the United States has rapidly increased its shale oil production from less than 500000        barrels / day in 2010 to 6 million barrels / day in 2018.

       With the substantial increase of supply, the oil price will naturally bear the pressure of falling.

    But this big crash in oil is unsustainable.

     From an economic point of view, the production cost of US shale oil is $40/barrel, Russia $19/barrel, Saudi Arabia $10/barrel.

    Where else can  oil fall?  Now is the best time to go in and make a long position.

     In technical analysis

MACD deviates from the price and appears at the end of a trend, representing a reversal.

    When the price falls, MACD rises, indicating that the downward trend is to reverse, which is the signal of short positions coming out.

    The pattern also provides price targets. You can subtract the low price of the head from the high price of the retracements. This gives you the height of the pattern.

    Then establish the profit target based on the height of the pattern added to the breakout price. 

    So, the target of the oil reversal may up to $28+$7=$35