Following a $10 bounce, Oil is now a marginal trade

Further to today’s note about Oil, OPEC and Oversold break-even inflation rates…….

This note told you,

AUD/USD, Gold, Oil and SPX hit targets

…..when Oil hit my long-standing lower target of $77.50 (trading to $76.25 intra-day).

That was 7 trading sessions ago and it coincided within the Oversold weekly reading for the 5 year break-even inflation rate.

Oil has bounced $10 since then.

Today, Oil has a short term upward trend developing,

but its only a trend.

At $87, it’s in no-mans land.

It could go $13 up or $13 down.

With new money, it’s a marginal trade or position to take.

Following a couple weeks of trade, I’m betting that WTI Crude sees $74 before it sees $100.

October 6, 2022

by Rob Zdravevski

rob@karriasset.com.au