WTI to bottom next week; time to turn positive view..
We expect WTI to bottom next week, and WTI will likely rebound towards end of the week..
i) During bull market, all downcycle was short and will last around 11-16 trading days. Current downcycle already lasted 10 trading day. if the above hypothesis is correct, current cycle will be finished coming week.
ii) 100MA is a strong support, and WTI has never exceeded and stay below 100MA.
iii) WTI stayed above long-term uptrend.
Fundamentally, the latest OPEC and Russia commitment to increase 1 mn barrels per day towards the end of the year should clear market key concern. Once market have factored into such major information in the demand/supply model, WTI should be stablished and likely back to uptrend.
i) During bull market, all downcycle was short and will last around 11-16 trading days. Current downcycle already lasted 10 trading day. if the above hypothesis is correct, current cycle will be finished coming week.
ii) 100MA is a strong support, and WTI has never exceeded and stay below 100MA.
iii) WTI stayed above long-term uptrend.
Fundamentally, the latest OPEC and Russia commitment to increase 1 mn barrels per day towards the end of the year should clear market key concern. Once market have factored into such major information in the demand/supply model, WTI should be stablished and likely back to uptrend.