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Today's Trade & News

Here what we mentioned for oil in last week newsletter - Why Wednesday of last week was important for oil...

ENERGY 

Last week on Friday oil traded negatively and closed around a five year low. Recent fall in energy prices has become the main headline in most of the business media. Middle-Eastern oil producers, and the Russians must be concerned about this falling in oil prices. Everyone is aware about the increasing oil production in USA which is not good news for other oil producing countries.

Our views for oil is very negative for the longer term, and we still advise to trade cautiously because the short and medium term trend in oil has also turned negative. In the above section we mentioned that if oil breaches $64.20 then we may see $57.80 level in a short period of time. The Astro cycle will remain negative for oil in the short term basis so avoid buying. If oil trades negatively on Wednesday and Thursday then we wont be surprised at all if it falls below $60.00.

On Monday and Tuesday oil will trade mixed to negative so avoid any positioning buying. Trading in and out will be the best strategy on both these days. Wednesday will be the most crucial day for oil and oil has to trade positively. If it starts moving down and closes negative then it will be a disaster indication from an Astro point of view. On Wednesday and Thursday oil trading weaker will pushed oil below $57.00 level. $57.00 level be a good buying level in oil. RB gas and heating oil will trade as per oils move so follow oils move.

Natural gas will remain in a mixed directions. Gas moved upwards on Friday as predicted and next week natural gas will hold value around $3.63. Natural gas stocks will trade positively compared to energy and drilling stocks.

 

Dont buy energy stocks at least for the next few months. ERX (3X bull etf) has been falling sharply and we are not recommending trying to catch falling knife.