The Energy Space
Energy Price Outlook
The oil market is a tough call today and could potentially rebound amid channel line support and today's non-farm payroll report. The channel offers support at $86.10/bbl in WTI, while we think that the payroll report could be spun favorably even if it misses estimates due to superstorm Sandy. Other factors are still pointing to the downside, but suggest that the best trade in the near-term is selling rallies in oil. Pressure will come from the increasing intransigence shown in the fiscal cliff negotiations, yesterday's ECB downgrade of its growth forecast, elevated U.S. oil production and weakness in demand, the likelihood that OPEC leaves production unchanged next Wednesday, and from Monday's bearish reversal pattern on the candlestick chart. We review the excess inventory situation in the Analysis section below. We would change our short-term bias from negative to neutral for a day or two, and attempt to enter new shorts at around the $88.00-$88.50 range....1228 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.