It’s hard to be bullish on crude oil says David Linton, Chief Executive at Updata, at least not until the seasonal cycle kicks upwards from around mid-January 2016.
Now that the August low of this year has clearly been taken out by last week’s price action, says Linton, a lot of bulls who got into crude in Autumn will have been wrong-footed and will be looking to liquidate their positions, pushing crude lower still. As such, he doesn’t think crude will start recovering until the seasonal cycle starts pushing upwards in mid-January.
Brent crude remains below the cloud on Ichimoku Charts and point-and-figure charts suggest short- to medium-term downside targets of 37.03 and 36.18.
For details, watch Updata’s Technical Analysis for Energy Traders, which includes an analysis of the major energy, currency and stock markets:
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