CFTC non-commercial net positions for WTI oil rising for fourth week reaching 231k net long contracts. In the past similar repositioning among futures traders was in March of 2015. Goldman Sachs recently came out with unrealistic price target (20USD).Usually also a sign of reversal. Remember Gold prices in summer of 2011 what did Goldman say?
Some fundamental update, why I am still bullish on oil: "A report showing a fifth weekly fall in the U.S. oil rig count also underpinned crude prices." - Reuters
Great chart, thank you. Can you give reasons as to why you see 20 as unrealistic?
RobertSoos
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Sure. 20 bucks is surrealistic because of Supply/Demand equations. We can already see trough US energy reports tha crude oil output dropped by 0,4% to 9.1 mbd, also the number of operating rigs is going down, see it here: observer-reporter.com/article/20150925/NEWS08/150929559
Bjiriin
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Hi. Just curious. What is the basis for the upward curve? Many thanks.
RobertSoos
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Hi there.This is an inbuilt feature of TradingView but it needs not just a target level from the trader but a time value approach also. Altogether this is a discretionary basis.