In an article published in July, named, “FxWirePro: Bulls target $56 per barrel for WTI on Saudi assurance; dissolve short positions, enter long positions” available at http://www.econotimes.com/FxWirePro-Bulls-target-56-per-barrel-for-WTI-on-Saudi-assurance-dissolve-s we urged our readers to go long in WTI. Here are some key points from that piece, “We would like to recommend profit bookings on the short positions recommended by FxWirePro around $49 per barrel back in May after the OPEC agreement. While WTI had reached our interim target of $42 per barrel, it looks like that it will not be reaching our final target of $38 per barrel in the current run.
While the bearish pressure that began back in 2014 riding on supply glut has not diminished completely, there lie opportunities on the bullish side at least in the short-term.
With a change in short-term outlook, we would like to recommend entering long positions at the current price of $48.4 per barrel and at dips around $47 and $46.5 per barrel, with a stop loss around $42 per barrel and with an initial target around $56 per barrel.”
As WTI reached our target in November, we recommended partial profit bookings in the tune of 75-80 percent and keeping the rest. And in Mid-December, as WTI was struggling to gain despite the OPEC deal extension we recommend that a correction is likely in the WTI but warned that before correction WTI might spike towards $60 area before falling. Hence, we recommended,
“Sell (half the desired amount) WTI targeting $52 area at the current price of $57.5 and with a stop loss of $62 per barrel. Sell the rest at a higher price to average the selling price.”
Though we strongly feel that a correction is long overdue, we believe that the ongoing geopolitical tensions in the Middle East and the latest Iran protests have altered this correction outlook. Hence, we would like to urge our readers to re-enter long positions in the WTI targeting $68 per barrel area.