Crude Oil Price 28th Jan 2016
Crude Oil price today once again bounced back from lower levels and once again we reiterate that Crude is showing signs of a bottom around 27-26$/bbl and we do not see Nymex Crude Oil Price going much below 27 now so traders who trade in crude oil or crude oil derivatives must start buying crude oil on lower side between 27-31 $/BBl for targets of 48-49 $/bbl. Please understand I am not suggesting for one minute that a bullish cycle is starting in Crude oil. All I am communicating is that the bottom is almost in place and shorting or doing bearish trades in Crude oil will not give any significant money to you as a trade. Look to buy around lower sides and keep booking partial profits regularly on upside and then trail the remaining quantity for higher side targets of 48-49$/bbl. We are awaiting final confirmation for reversal and once we have final confirmation for Nymex Crude Oil we could look at a possible pair trade also that is Short Indigo and long Cairn India (possible but on final confirmation we will take the trade) or may be a plain long Cairn India as we then see this counter as a proxy play for Crude oil.
Good Trading To You!