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Synergy Markets advises customers to trade crude oil with caution in its new report



Synergy Markets, formerly known as Synergy FX, has released an in-depth analytical report on trading crude oil, given the unprecedented interest recently. The Australian brokerage firm has identified 5 key areas and has issued advice on what to be aware of before trading.

The five areas the report covers include:

  1. The first consideration Synergy Markets included in its report is the history of crude oil and the WTI Contract. Skilled trades understand the history of the product to understand the market and current volatility it is experiencing.
  2. The market analysis also covers the upcoming futures contract expiry and whether we should expect a similar sudden drop of value due to oversupply.
  3. It also ventures into taking advantage of the extreme market volatility caused by Covid-19 versus sitting on the side-lines until normality is regained.
  4. The report analyzes the politics behind the contract, along with the supply and demand issues, as well as the technical.
  5. The last consideration in the report is whether buying and holding crude at these prices is reasonable.
What happened to oil prices?

Head of Synergy Markets, Christian Dove commented:

Christian Dove

I know many retail customers out there are desperate to benefit from what they see as huge opportunity to trade crude oil at these low prices. However, I advise – if you intend to trade oil, then please do so with great caution. I think we could easily see prices squeezed and more significant drops in to the next futures expiry – followed by a significant rally as demand re-ignites and as the current oversupply is exhausted and the inevitable lag for supply to be turned back on.

Dove added:

To buy at these levels may risk being closed out on margin if prices drop a relatively small amount – so, if you have to, please trade cautiously and within sensible risk parameters.

Synergy Markets was revived and relaunched in the end of April after ACY Securities had acquired the company in 2018. The rebranded brokerage opened for clients earlier in April with FX veteran Christian Dove at the helm. He ran the company from 2011 and was asked by ACY Securities to take the lead again.

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Synergy Markets advises customers to trade crude oil with caution in its new report

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