I believe oil is going to break its lower resistance level very soon and reach 55 USD/barrel within a month or so. What is the best instrument(s) to use to maximize potential gains during this? What have you used to short stuff??
>>60967855I’m not legal allowed to tell you about put spreads
>>60967855Don't.
>>60967862why not & thanks>>60967867why not
>>60967855> I believe oil is going to break its lower resistance level very soon and reach 55 USD/barrel within a month or so. Why?
>>60967855He shorted oil? Start another war in the middle east. Now pomp eet to $200 a barrel.
>>60967890>Why?some of the top of my head;1 increased risk of recession (US tariffs eating companies margins) = lower oil demand to drive economy, see pic in >>609678862 US unemployment starting to tick up, picrel3 oil remaining fairly cheap even during all the trump-iran / israel stuff = weak underlying demand4 russian central bank forced to lower its oil price forecast5 us fed has been starting to cut rates>>60967898see point 3 above
>>60967855Do you think oil stocks like XOM and CVX will tank?
>>60968078kinda, they are correlated with the price of oilsee pic
>>60967855OP, you're probably going to be right, but whether or not oil prices end up going up now, or fall first and go up later, is not easy to say. Oil is a difficult market to be trading right now. I'd say a safe approach is doing something like selling Puts on oil companies. If oil falls, and takes down the oil stock with it, you'll get a good entry on that oil stock (I'd recommend Chevron). If oil ends up just consolidating/not doing much, and the oil stock just rises slowly with the general market, you'll keep the premium. If oil shoots up, use what you made in premiums to take a leveraged position in oil futures, risking only what you made through premiums.
>>60968078CVX is going to, likely, go into a consolidation that will last into early 2026. It will be a good time to look for buying opportunities.
In general: med/short term downside, longterm upside in oil and oil investments.
>>60967886cuppa
>>60968078They are already very cheap. So is oil considering there is still strong demand and tensions in the Middle East is on the brink of exploding.
>>60967886Oil is always heavily shorted. Now consider current events in Gaza and how nervous everybody is in the Middle East. Any day Netanjahu can and probably will completely escalate the situation. You'll get wrecked in a short squeeze.
There's lots of different ways to do this but given you are asking this question just buy an inverse fund. Quick and easy, no math, no complex plans, direct results and you can buy sell at will. To short oil, you can use derivatives like CFDs, futures, or options, or buy an inverse ETF. In most cases, you will sell a contract to profit if the price of oil falls, or buy an inverse ETF that is designed to gain value when oil prices drop. 1. Choose Your InstrumentCFDs (Contracts for Difference): You sell a CFD, which is a derivative that allows you to speculate on price movements without owning the underlying asset. You profit if the oil market price falls and lose if it rises. Futures: Shorting oil futures involves selling a contract to deliver oil at a future date and price, betting that the price will be lower when you close the position. Options: You can sell options contracts, which give the buyer the right, but not the obligation, to buy or sell oil. Selling an option can be a strategy to profit if the price falls. Inverse ETFs: You can buy an ETF that's structured to go up in value when oil prices go down. 2. Open a Trading Account You will need to open a trading account with a broker that provides access to the specific oil derivative you wish to trade.3. Place a Sell Order Once your account is set up, you'll select the desired oil market and place a "sell" order for a CFD or a corresponding sell order for other derivatives.4. Monitor and Manage Risk Actively monitor your position and the oil market to manage any potential losses.Be aware of risks like the market moving against your position, which can result in losses, or a short squeeze.
do it, long term oil will seek prices upwards from current prices
>>60967855Maybe only consider a short on oil for quick turnaround on investment, and not as a long term position, if you are going to consider a recession as a reason for investment, note that they may likely have turbulent market recovery, and that it is important to liquidate quickly so as not to lose investment when the market "rubber bands" upward based off of your potentially quite large gains, as this dip may happen, but may be raised by other people also seeing this dip in the moment, and choosing to invest which may then bring the price back up, destroying your short position, and maybe loosing you all of your money
It could see $55. I'd be watching for this then go long big oil. Why do you want to be a negative nancy?
>>60970420ya, but the worst (iran) has passed and oil hardly moved up on the qatar thing >>60970467why not? at least in the near term given the macro data and technical signals
>>60970477>macro data and technical signalsThis is astrology for men. It is 50/50 it simply goes up or down stop trying to complicate things.
>>60970490it worked last time i saw it in oil about 2 yrs ago. just didnt act on it that time, however i will this time. i agree its not a science, but few things are in the markets. the psychology is real and people, including professional traders, will 100% act on an extreme macd value or triangle pattern for example. if you have the fundamentals on your side, then a triangle pattern at this stage is better than 50/50
bump 4 reps
>>60967855Most people won’t understand what this is — until it’s everywhere. That’s how it always goes. But those who do their own research now… they’ll be ahead of the story. #MORICOIN
>>60967855Op you drew a downwards pennant I'm not a finance guru but isn't that a bullish signal?
