After massive 10 week decline oil has posed overwhelming comeback in the last two days of the previous week, where price jumped as much as much as 18%.
Though most of the Bull Run can be attributed to short covering, we expect further covering of shorts given extreme sentiment and position.
WTI is likely to go for larger correction, even if price dips further.
Trade idea –
- Buy WTI at current price of $45/barrel, with stop around $40-38/barrel and with initial target around $53/barrel.
As of now risk reward might not seem favorable to this trade, but we expect oil to trade much higher and it is an opportunity to buy at this price.
The material has been provided by InstaForex Company – www.instaforex.com