Long oil has been an interesting candidate, a contrarian one, and definitely risky with the heavy momentum the downside has seen. Perhaps there is still much more to go, but I do like the idea of a long at current levels, adding to the position between $32 and $30 levels with a stop below $27.50 lows set this year.
While the current bounce is more profit taking and short re-positioning at higher levels, I think the rebound is not complete. We will continue to see support from the CBs and will most likely get back above the $40 range before possibly, and I do emphasize "possibly" make lower lows as the system begins to unwind as economic problems will remain into 2017.
Long at current levels with proper risk management could turn this trade into a winner.
While the current bounce is more profit taking and short re-positioning at higher levels, I think the rebound is not complete. We will continue to see support from the CBs and will most likely get back above the $40 range before possibly, and I do emphasize "possibly" make lower lows as the system begins to unwind as economic problems will remain into 2017.
Long at current levels with proper risk management could turn this trade into a winner.
