Hawkish on inverse Oil derivatives DWTI
AMEX:DWTI VELOCITYSHARES 3X INVERSE CRUDE ETN LINKED TO THE S&P GSCI CRUDE OIL INDEX EXCES
This Spring there were huge in DWTI and the fact that mid-term downtrend didn't go through tells me about accumulation in this . And if you consider fundamental factors of OIL: Aramco IPO , shrinking demand from China, world transformation to alternative energy, in general state of Money Monegers by CoT ( WTI Commitment of Traders http://freecotdata.com/commodities-2/), we can expect equilibrium of oil prices below, and thus hawkish state of DWTI . TA also supports the way up, which prints higher high, and higher low on the , meeting buyers from 50ema on Monthly. Plus, if we close that month at this levels, in addition to the rest arguments, we shall get engulfing candle and step by step Targets @ 125, 230, 400$ shall be open. Remember to take profits, as derivatives is not an investment instrument.
I agree with the general analysis above. However, I would not recommend bear ETF for long position. DWTI might hit the mentioned targets, but boy-o-boy one will feel the pain before it does. There is positive sentiment towards oil with rigs counts and other data and it is the best hedge now until election. Also take a look at Fib levels for light crude, 41.3 $/barrel looks like good support.