by Mike Lim
There has been no doubt that oil was oversold as the technicals have shown there to be very low RSI level. Oversold indicators were going off as it continually hit the $47 level. The fumes were already there, it didn't take long for the fire to start. Add to this a bullish API and EIA report, we got our dead-cat bounce. Saudi even added fuel to the fire by saying they were going to cut production by the end of the summer. This goes back to what we have been saying at Equity Sense that the more you see these kinds of events, the more you no longer believe in coincidences. However, at the end of the day, it all boils down to a few things: 1. Do you believe the Saudis? 2. Will you go long Oil knowing Iran is now in the mix? I remain bearish on oil in the medium to longer term. Although in the short term, anything goes.
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Multiple AuthorsTraders from Equity Sense will be writing on this blog on positions and other market-related things. Archives
May 2018
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