Oil has made a short term top

Discussion in 'Trading' started by detective, Jul 9, 2008.

  1. This is short term bearish action in crude oil. With so many people looking for $150/barrel to dump their long positions, crude fell short of the target and now late longs are left holding the bag.

    I have been one of the most zealous bulls in crude oil but the actions speaks loudly. Iran shooting missiles, Crude inventory data which showed a bigger than expected draw, and a healthy drop yesterday set things up for a nice bounce back today. But crude went nowhere. This is bearish. One shouldn't read too much into one day, but the previous action in late June where crude zig zagged between 131-140 in volatile movements for quite a while was a sign that prices have risen enough in the short term. The rise last week was a headfake.

    As the stock market heads lower, I see crude continuing to pull back as worldwide recession begins to get priced in. Long term, I am a crude oil bull but short term, I wouldn't be a buyer.