“Hold your Oil Shorts” Calls from the Floor
Ladies & Gentlemen
As our eyes turn to the weekend – the volatile weekly Oil market draws to a close after a neat 10% slide on the back of further global supply gluts.
From my post labelled “Crude Oil – A Bargain Hunt” the larger oil producing nations are looking at the $50 mark as the benchmark heading into 2016. However, the institutions & techies are looking at $50 as a perfect opportunity to remain short.
So how are the Traders actually clicking? Well.. the more short-term clickers are looking at more downside targets, however some trading puritans would argue about the risk:retun. Although, as i Look at the chart & price action this morning, you can see that the market is heavily gripped by short covers.
Hence the phrase “if I can scoop a small profit I will take my money and run” in my original post.
Looking at a first target of $46.90 and would target ever 5 cent fall beneath this level. Tempted to leave this short open for the rest of the day heading into early next week – especially after 4 days of straight decline. WTI is set to make its steepest weekly loss in 10 weeks and Brent in 8 weeks. The Market is expected to remain heavily over-supplied heading into 2016 & sadly for the Oil companies – The Facts do not lie!
Some Oil optimists are hoping that Shale production forecasts are on the decline, as output is geared towards a fall in November and also data from the EIA showed gasoline stocks falling by 2.6 mio barrels per week.
Best of luck with your positions
AnishFX @ Atom8.com
