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O’Hare: Consolidation in WTI
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Steve O’Hare from First 4 Trading believes that WTI crudemay have found a bottom and is looking to buy at current levels. Comments fromOPEC’s Secretary General on Monday suggested that the decline in oil prices hasbegun to consolidate. Brent crude oil has traded between the USD 48-50 rangeover the past week.
Steve notes that the steep decline in the price of oilclosely resembles the previous sell-off from 2008. Long-term upward trendingsupport can be found from 2001 and 2008, where there was a similar period ofseven consecutive months of negative candles.
Based on the support line from the previous two sell-offs,Steve is expecting to see a recovery in the price of WTI crude. In theshort-term he is looking to buy at current levels around USD 45. He istargeting a rally to USD 52 and USD 60. A stop can be placed at USD 41.
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