Sunday, July 3, 2016

Weekly Oil Catalysts And Direction

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*We are reversing course to turn bullish on oil.
*Our support/resistance of 49.30 was exactly hit on Friday's close.
*That tells us the uptrend is not over and oil "held".
*We think the reversing KSA story may be the key to oil prices.

We are reversing course after testing an oil short (NYSEARCA:USO) (NYSEARCA:OIL) (NYSEARCA:UWTI). The price jumped back to our key level and we think it may be a sign that too many supply factors are building which can push oil higher.
When we entered the short on Thursday we said, "we see an important support/resistance at 49.30." We said, "We're very close to it but if we can close the week below that level, we think we have formed a downtrend for next week as well."
We are at 49.29 as of Friday's close. That is not enough room for us to speculate about a change in direction. If anything it's telling us that the previous trend (up) is still in place.
We like to look weekly. Weekly gives us enough time to see if our initial thoughts and levels are confirmed.
Here, our Thursday call and price was answered to a T, 49.29.
Here's the chart.

Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. #in, $spy, $qqq, $iwm, $vxx, $ycs, $fxe, $EUO, $YCS, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principal especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD BESTIDEAS, ITS CONTRIBUTORS AND ELAZAR ADVISORS, LLC HARMLESS

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