USCOIL / WTI SHORT-TERM SHORT TRADE
Updated
I can see a clear trend reversal after hitting a major resistance point at $50. This leads me to believe than in the short-run there is enough room for oil to tumble. Scenario #1 is that there is a weekly window during which oil will fall to around $45 and bounce off. Scenario #2 is that oil tumbles down to its previous major level of support at $29. Overall I have a bearish sentiment on oil. This mainly stems from OPEC's inability to regulate supply. More specifically, I see no intention from S.A. to cut its supply. This leads me to think that the market will revaluate oil at around $30. That is mainly due to S.A.'s ability to produce oil at a cost of $20-25 -per barrel which in the short term will create a market failure.
Trade closed: target reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.