I just came across this Bloomberg piece, Five Charts That Explain Crude Oil's Sudden Nosedive Toward $45, which provides some charts and data on last week's oil market panic. The charts include a look at technical analysis, showing that WTI broke through some low measures which would cause technical traders to sell; action in the options market focused on puts with strike prices of $45 and $46; and a change in the forward price structure from contango to backwardation, which they suggests shows a move from bullish to bearish sentiment.
It should be another interesting week. Will prices break lower, or will OPEC and Wall Street be able to defend the current low?
No comments:
Post a Comment