Well, it all depends on your trading style. Looking at the charts for USO (my favorite Oil ETF), everytime you say it cant go lower, it does just that. For me, I am going to wait for oil to actually make a higher low (swing high) before looking at investing in oil for the long run. What's interesting is that even though Oil continues to go lower, the price at the pump has stopped going lower and in fact is higher than it was months ago when oil was more per barrel.
When crude breaks above $50/barrel which would be late March/early April. On a daily chart it's forming a sideways base after it's down-trend ended in December.
If you buy now you're taking a speculative view in anticipation of the upside possibility and would need a contingency plan at a price where you will cut your loses if you're wrong.
Some analysts say : oil has quite a bit lower to go. I think the recession is going to get worse yet and unemployment is going to rise more. We have large amounts of oil in storage, excluding the strategic reserve. I think the price will eventually go below $20. And rise to around $75 in a couple of years.
Best advice is till the recovery in the share market in the world market started to come, no one should purchase the crude oil in the MCX.
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