FxWirePro: Prepare to add additional short positions in oil

In an article, published on June 23rd this year, named, “FxWirePro: Book partial profits in oil as first target reached”, available at http://www.econotimes.com/ , we recommended,

“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 below 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.” The short call was initiated at $49.6 per barrel.

Yesterday’s big selloff in oil that saw the price of WTI declining from $47.2 per barrel to as low as $44.5 per barrel strongly suggesting that the correction is likely to be over and we would like to recommend adding additional short positions to our call with the previously mentioned target around $38 per barrel.

Oil (WTI) price is currently trading at $45.8 per barrel and we would like to recommend adding 20 percent of the booked positions and the rest at rallies.