FxWirePro: Book partial profits in oil as first target reached

In a review article named, “Oil in Global Economy Series: What's now for oil price amid OPEC/N-OPEC agreement?” available at http://www.econotimes.com/Oil-in-Global-Economy-Series-Whats-now-for-oil-price-amid-OPEC-N-OPEC-agreement-726976 , written in the aftermath of OPEC deal, we discussed how oil price was impacted by the famous ‘buy the rumor, sell the news’ trade after the deal was agreed upon by OPEC and participating 11 non-OPEC countries back in last month. Here are some lines from that article,

“While an agreement to extend supply cut is a positive fundamental development for the oil market, we suspect that the price may remain subdued despite the deal. There could be some buying after yesterday’s big selloffs (we are already noticing some), however, we suspect that the price would decline further towards $46.5 per barrel (WTI) in the short term before next major move. We would be closely monitoring price movement to understand the direction.”

In a separate article, named, “FxWirePro: Oil price likely to slide deeper towards $40 per barrel”, available at http://www.econotimes.com/ , we extended the target for WTI to $38 per barrel, with an interim target around $42 per barrel.

This week, the price of oil reached $42.02 per barrel, which is the weakest level in seven months. We would like to recommend profit booking to our readers in the tune of 50 percent of total positions as RSI reached blow oversold level and the risk of a temporary bounce back increased. We, however, marinating our bearish outlook and might enter fresh short positions at a bounce back. WTI is currently trading at $42.9 per barrel.