There is a saying:
1. Think like a Fundamentalist and Trade like a Technician.
2. Never Go Long in a Bear market
There is a reason people say one should not go long in asset which is in a Bear market. Just see the chart of Brent Crude....the high prices don't stick and Sell on rally remains a dominant theme
All the enthusiasm around OPEC production cut vanished now. There is a reason why Brent Crude market is behaving the way it is behaving. I listed some of the reasons few weeks back
The whole argument: Crude has a limited upside but also limited downside. So, the question: At what level Crude becomes a Value play.
The Chart suggests $44-46. Brent Crude is now going to trade between 44-46 on downside and 56-58 on the upside for some time to come. Combining Price action with fundamentals gives a great insight into what the market is doing/saying
What does it mean when somebody says Listen to the market
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers