With oil breaching critical historical support levels and the OPEC/Russia deal only cutting back supply by roughly 10 million barrels per day, the price of oil is now set for free fall in the next few weeks. From a technical perspective a retest of the $14 price and the $10 price range is getting more probable every day. For long term investors this is an opportunity of a lifetime to make a life changing investment in a commodity that historically has much higher levels of demand in a normal economy. My recommendation is to short anything above $20 and to start slow by closing shorts and opening long positions in the $14 range and buying all dips from there. An eventual retest of $20 when the smoke clears will make short and medium term investors a potential 50 to 100% gain while long term investors who are able to hold for many years may end up enjoying 500 to 1000% gains. I firmly believe that many millionaires will be minted from this debacle in oil prices. Couple this with some exposure to the security that Gold provides in a stagflationary environment and your portfolio will thank you dearly. Just make sure to get out of gold the minute you smell interest rate hikes coming. Leave your questions and comments below!
Comment:
So far so good....We hit my first target of $14. Now awaiting final dump to $10. If $10 doesn't hold then Oil will just need to find a bottom and it's not going to be pretty. Stock up on USO if you don't want to trade futures. USO is an ETF and can be found on Ameritrade.
