Wednesday, 13 April 2011

Single Digit Crude Oil

This might sound crazy to you.

Crude oil could be below $10 by the end of the bear market.
Let us wait and watch if this happens or not by 2016 or so.

From a technical perspective $147 was the peak in 2008.
The first low was $33 in 2009.
The next lower high will be sometime this year - I think it will be less than $147.
Let us observe that.
This is in 2011/12.

The final bottom will be below $10 - may be before 2016 or so.

I will come back to this post if I am right.
I will come back to this post even if I am wrong.

Btw in my previous post I have said that oil will touch $33.

This is not to say that you cant trade this asset class.
As I have said before we will see mini booms and busts.

Oil from 33 to 120 is almost a 4x move.

It may exhibit similar up and down moves as well in the course of its journey.

Lets wait and watch.

PS - I have also said that Silver could be below $8 by end of its crash.
Silver is at $40 and the crowd thinks it is heading to 50, 70 , 100 and 200.

I politely disagree.

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