WTI Near "Support" While Sentiment Still To The Downside
WTI has played out fundamentally, and the fundamentals (along with sentiment) still remain to the downside. Traders love to pick out bottoms by catching falling knifes, and they're usually cut up in the process.
On a risk:reward basis, sure WTI may seem like it's at a nice area to buy. Yet, I think it is still to early. Crude will likely find support at the longer-dated support in the low $43's per barrel. While I would suggest opening fresh shorts without a pullback, it still may be early to gobble crude futures.
The implications are still apparent. Supplies are still gluttonous, and shale companies are hurting. WBH Energy has become the first casualty of the oil warfare. I expect more to come, particularly Cheniere (idea to come).
I have been short since $74, and I wouldn't suggest serious upside unless $53.5 is retaken.
On a risk:reward basis, sure WTI may seem like it's at a nice area to buy. Yet, I think it is still to early. Crude will likely find support at the longer-dated support in the low $43's per barrel. While I would suggest opening fresh shorts without a pullback, it still may be early to gobble crude futures.
The implications are still apparent. Supplies are still gluttonous, and shale companies are hurting. WBH Energy has become the first casualty of the oil warfare. I expect more to come, particularly Cheniere (idea to come).
I have been short since $74, and I wouldn't suggest serious upside unless $53.5 is retaken.
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