Commodities Crude

Sell WTI Crude: tgt $35.40

Crude has been the most outperforming asset class this 2016 in terms of Rally but now somewhere it is nearing a small profit booking mode. As i initiated long call a way back at $32 with targets of $40 but now i would take a sell on the crude. Even Iran has intimated that they wont cut production atleast for some time in near future so supply could constantly rise. As you all could notice on the daily chart, we have seen a “Inverted Hammer” on Friday and also closed 50% on the green body of previous candle making charts more weak. On the other side, we are witnessing negative divergence of Price to RSI so we can surely initiate a short call on the crude with the targets for 100 day average (green line) on the support side.

Strategy: Sell with Sl $41.20,  tgts 36.50/35.30 

Leave a Reply

Your email address will not be published. Required fields are marked *