On Aug 7, I posted a WTI chart on StockTwits – basically a bullish pennant based on which my expectation was for a continuation of the current run up. However, I do not expect WTI to run beyond 52/53 for now as the LT outlook continues to be bearish both on fundamentals and technicals.
In today’s chart, I have attempted to “size up” the potential trend zones as I thought this would help us to some extent, going forward. Here, my goal was to present a larger picture. The focus is not on that small bullish pennant, but on the larger wedge and a medium to long term outlook.
As I have been saying for over 3 weeks now (from 47 levels), Venezuela will continue to be a risk, if you are an Oil bear. So one needs to “bear” that in mind, no pun intended.
Needless to say, my opinions are just opinions. So if you are using these forecasts as a basis for your trading, make sure you follow the stop levels I keep posting on StockTwits. Happy trading!