Hi Folks:
Apparently I am weighing fundamentals differently than big players and that's why I have been wrong in this tremendous uptrend.
We are currently trading above main EMA's and therefore we are still on bull's hands but does it make sense with all these Omicron lockdowns in China, Europe, USA, etc? Some of the airplanes, trains, ferries, etc are empty, there is clearly a lower demand but it all points to a short squeeze before a new dump, when is this going to happen? That's the million dollar question, but my best guess is tomorrow or Monday. These two are the common days for dumping oil and profit taking.
I decided to lock in the losses today to avoid overnight costs and start fresh with new shorts and that's what I am going to do. I will be shorting from 83 to 83.30 and then from 84.50 to 85.30 in the worst case scenario.
I don't think the current price is justified even with the lack of investment in the oil industry but one thing I know for sure, the higher it goes from here, the more problems they are placing global economies to recover and at some point there will be consequences that may backfire all the OPEC+ efforts to bring balance to the market.
China keeps buying oil in the black market from Iran and Venezuela regardless of their sanctions and Iran may soon have their sanctions lifted, specially with such high oil prices, therefore we could be facing soon a U-turn again.
That's my 2 cents on this tricky OIL.
STAY SAFE. Cheers
-------------------------------------------------
Remember, if you liked this idea don't forget to click LIKE and FOLLOW. That will encourage me to continue charting for you.
Apparently I am weighing fundamentals differently than big players and that's why I have been wrong in this tremendous uptrend.
We are currently trading above main EMA's and therefore we are still on bull's hands but does it make sense with all these Omicron lockdowns in China, Europe, USA, etc? Some of the airplanes, trains, ferries, etc are empty, there is clearly a lower demand but it all points to a short squeeze before a new dump, when is this going to happen? That's the million dollar question, but my best guess is tomorrow or Monday. These two are the common days for dumping oil and profit taking.
I decided to lock in the losses today to avoid overnight costs and start fresh with new shorts and that's what I am going to do. I will be shorting from 83 to 83.30 and then from 84.50 to 85.30 in the worst case scenario.
I don't think the current price is justified even with the lack of investment in the oil industry but one thing I know for sure, the higher it goes from here, the more problems they are placing global economies to recover and at some point there will be consequences that may backfire all the OPEC+ efforts to bring balance to the market.
China keeps buying oil in the black market from Iran and Venezuela regardless of their sanctions and Iran may soon have their sanctions lifted, specially with such high oil prices, therefore we could be facing soon a U-turn again.
That's my 2 cents on this tricky OIL.
STAY SAFE. Cheers
-------------------------------------------------
Remember, if you liked this idea don't forget to click LIKE and FOLLOW. That will encourage me to continue charting for you.