The price of crude is at all time high.International oil cartel is giving a number of reasons behind the rise in price.But this is a part of cyclic phenomena.Due to this exorbitant price there will be a decrease in demand, at higher level.So, bull liquidation can happen anytime.that is why one can short crude for medium term.
At present the price of crude is $115,but it has the potential to come down to $65 in a span of 3 to 4 months. If we see the movement technically ,then in historic price high sky is the limit, but here again the fundamentals come to rescue.
while doing analysis i have kept the following factors in mind:-
1) International oil supply
2)demand in world
3)long positions in it by bull cartels.
4)last 4 month price variation.
5)it's demand in future which may slow
So, from the above discussion i have deduced that if any stock market player goes short in crude with a horizon of 3 to 4 months ,then he would get a handsome profit.
Disclaimer-this article has been made to give you only information not as professional assistance.so please take it as information and take your own decisions
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