Crude Oil futures (symbol: CL) are due for a bounce. All petroleum markets are in deeply oversold condition. We’re targeting the $64-75/bbl range.
The aggressive selling in Crude Oil during the second half of 2014 is part of the final leg of the correction from the all-time high in Jul08. This leg of the correction should take us near, or below, the low of $32.48/bbl established in Dec08. But first a bounce, followed by more selling. Again, we’re targeting $64-75/bbl on the bounce.
Murphy & Co’s Crude Oil model is currently flat, holding no position. To learn more about Murphy & Co’s position models, visit http://murphycofutures.com/position-models/