Every Trend has an end. Looking at long term markets in detail.

18 Jan 2022

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There is a large debate around the current US OIL market. Many think it will go up and up forever. Unfortunately, that is just not how markets operate..

Markets move up and down based on sentiment (market news and buyer/seller strength). This drives the market up and it drives it down. What puts a market up for a large rally is good or positive news surrounding the commodity in question, In this case it is oil.

Positive news sentiment has led to a large increase in price. BUT, after these long moves, we get changes in sentiment that draw prices downwards. If you look at the rally size on OIL you will see it has gone up for a long time and is due a pull back down to reasonable prices.

If you are worried about it, flick back through your charts. Look at ALL the other times it has happened and make your reasoning.

If you are going to go short, trade it small. Also, Like now you can continue to short on the fall after price begins to move away from Previous highs.

Remember these trades will Not be overnight so do not treat them in such way. If you are short, trade small and have patience.

Current fundamental analysis is showing positive market sentiment. This is based on the latest news out around the tightening of supply and the increase in demand.

Be sure to check the news around oil when trading it as it is heavily sentiment driven.

21 Jan 2022

Nota

First exit hit. Looking to Re short higher.

24 Jan 2022

Nota

Exit again if shorter.