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O’Hare: Why I’m bullish on WTI
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With the number of US rigs falling to the lowest level since 2010, investors are speculating that lower supply levels are ahead. The positive sentiment surrounding WTI and the recent uptick in prices has Steve O’Hare from First 4 Trading bullish on oil in the short term. WTI recently broke above the USD 54.00 mark, which has been an area of great resistance according to Steve. Now he is expecting that a “reasonable correction” could target the USD 67 area. This is the 38.2% Fibonacci retracement level of the 2014/15 trading range. Additionally, a double bottom formation has formed at USD 65.00.
With technical indicators signalling a shift higher, Steve is looking to set longs at current market levels and on a dip to USD 54.00. He is targeting a move towards USD 65.00 with a stop of USD 50.00.
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