The Research Team at Bank of America-Merrill Lynch, expects WTI Crude’s gains to continue towards $54.33 levels.
Key Quotes
“Evidence suggests that Friday's surge higher in WTI has further to run. The recent surge in Open Interest, rising approximately 134k contracts since Jan-16, indicates vulnerable short positions (open interest rises when the seller is a new short and the buyer is a new long) which are now at risk of being covered.”
“With the break of 2m trend line resistance (and weekly hold of 16yr trend line support) gains should continue in the sessions ahead towards the Dec-16 low at 54.33 before renewed stalling.”
Key Quotes
“Evidence suggests that Friday's surge higher in WTI has further to run. The recent surge in Open Interest, rising approximately 134k contracts since Jan-16, indicates vulnerable short positions (open interest rises when the seller is a new short and the buyer is a new long) which are now at risk of being covered.”
“With the break of 2m trend line resistance (and weekly hold of 16yr trend line support) gains should continue in the sessions ahead towards the Dec-16 low at 54.33 before renewed stalling.”
