WTI Oil Price: How Low Will It GO?

1
(No Transcript)
2
Welcome to Commodity Trading Research Your
premier site for fundamental and technical
analysis for profitable Commodity Trading. For
more info on Commodity Trading Research visit our
website www.CommodityTradingResearch.com
3

• Hi, My name is Justin and Im with Commodity
  Trading Research, today were reviewing our
  recently published article

4
WTI Oil Price How Low Will It GO?
5
No doubt about it, bears are back in full control
of the oil market... Over the past few weeks
the price of West Texas Intermediate (WTI) crude
has plunged from the high 50 a barrel range to
the current price near 45.
6
As I mentioned here, investors are focusing on
multiple bearish factors including crashing
Chinese stocks, heavy global supplies, and the
looming end of the summer driving season.
7
(No Transcript)
8
As you can see, sellers are ruling the roost.
The recent downturn has the WTIoil price down
3.9 on the week and off by a staggering 20.9
over the past month. On a year-to-date basis the
commodity is lower by 17.
9
Where does the crude go from here? Notice in the
chart above that the yearly low (red line) at
42.50 a barrel isnt far off. Given the
commoditys bearish momentum and ugly sentiment,
its quite likely that price point will once
again be realized.
10
And listen to this Theres a growing chorus of
analysts proclaiming crude is about to crash into
the 30 a barrel range. Whats their reasoning?
11
Some believe the soaring US Dollar still has
plenty of room to run, which will put continued
pressure on WTI. Others suggest the oversupply
issues that have plagued the commodity since late
last year, wont alleviate any time soon.
12
While I wont argue thesebearish points, WTI
crude is reaching drastically oversold levels on
a short-term basis. In fact, based on the
Relative Strength Index (RSI) the last time crude
was this oversold (in January 2015) it rallied a
stunning 30 in a matter of weeks.
13
In case youre unaware, the RSI is a very useful
technical tool for measuring overbought and
oversold areas in any market.
14
With that said, is it time bet on a crude market
rally? Not quite As I mentioned earlier, its
likely WTI crumbles to the 2015 low set in March
at 42.50. But once that price level is hit, the
odds favor some degree of relief rally.
15
How do you capitalize on this situation? If
youre quick you can catch the last little bit of
WTI downside with the ETFs listed here and here
16
But dont fall in love with your bearish
positions Once 42.50 a barrel is realized its
very likely bulls stand up to challenge the
recent dominance of crude market bears- and
thats precisely when you strike on the long
side.
17
Its tough to say just how much of a rally well
see from 42.50, but its quite likely bulls make
a stand at that level!
18

• Want More from Commodity Trading Research.com?
• Follow us on Social Media

19

• Want more FREE information on Commodity Trading?
• Commodity Trading Research.com

Get Your FREE Report Now
20
READ THIS FREE REPORT!
The 3 BEST Commodity Stocks for 2015 Trading
Success!
CLICK HERE