Oil ‘As­trologer’ Pre­dicts Bears till Aug 18

The Economic Times - - Commodities Plus -

The man who ac­cu­rately pre­dicted four mar­ket crashes to the ex­act date re­cently told Busi­ness In­sider about his cal­en­dar pre­dic­tion for when oil prices would start to sig­nif­i­cantly slump again. Sandy Jadeja is a tech­ni­cal an­a­lyst at Core Spreads.

Jadeja says there is a spe­cific time pe­riod to watch out for. “In­ter­est­ingly if we take a look at the chart, we can clearly see the tech­ni­cal in­di­ca­tor on the lower por­tion of the chart show­ing a po

ten­tial move to lower prices,” Jadeja said. “This is a well-known sea­sonal ef­fect that many com­modi­ties tend to fol­low and can be utilised for prof­itable trad­ing.

“By ob­serv­ing data pat­terns we also note that there is an 80% prob­a­bil­ity of lower prices from July 2, right through to Au­gust18. These type of pat­terns can be very use­ful to short-term traders who are ei­ther look­ing to profit from short-term trad­ing op­por­tu­ni­ties or the longer-term trends as shown on the chart.” But oil is a tricky one.

Oil, which cost over $110 a bar­rel in June 2014, is now trad­ing at about $45 a bar­rel. At one point this year, it was touch­ing $20 a bar­rel. So con­sid­er­ing oil’s cur­rent level, it looks as if prices are in a re­cov­ery.

But Jadeja said there would be a pe­riod of fur­ther down­side trad­ing that could pro­vide a good op­por­tu­nity to short sell­ers — peo­ple who bet against the per­for­mance of a com­pany or as­set and profit when the com­pany stock or as­sets fall.

“At Core­spreads.com traders can ben­e­fit from tight spreads by tak­ing a view on this com­mod­ity and seek­ing to ben­e­fit from fall­ing prices if this down­trend con­tin­ues,” Jadeja said. — Busi­ness In­sider

Sandy Jadeja Lianna Brinded

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