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Published on 3 Jan 2017
The
WTI grade of oil initially rallied on Tuesday as traders came back from
the holidays, but found the area above the $55 level as far too
resistive. We turned around to form a negative candle, and fell
significantly. While I’m not ready to declare that the rally is over, I
do recognize that this candle could be significant. After all, we
witnessed a significant fall. Also, I still don’t believe the
longer-term prospects for oil are good, especially considering that OPEC
has a long history of having members cheat production cuts. Compound
that with higher pricing dragging more American and Canadian shale oil
into the market, and you have the potential for a turnaround in the
overall trend. I’m looking for exhaustion after rallies to start
selling.
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