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Crude oil is on a brink of a turn – TDS

Crude oil markets could be about to break down. A downtape could now force trend-followers to liquidate a massive -40% of their max size, TDS senior commodity strategist Daniel Ghali notes.

Trend-followers to liquidate -40% of their max size

“Crude oil markets could be about to break down. The downside in crude markets has remained relatively tame over the last weeks; a downtape could now force trend-followers to liquidate a massive -40% of their max size, suggesting the window for large-scale algorithmic liquidations is now open.”

“With our gauge of global commodity demand trending notably lower, we expect downside pressures to continue to build without an additional boost to supply risk.”

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FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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