Medium term
Trade view / 31 August 2016 at 13:35 GMT

Oil correction set for a deeper pullback

Director / PIA First
United Kingdom

Oil has been a dominant theme through 2016, where the producing nations have tried to support prices through coordinated output production cuts. Due to the lack of willingness from some regions, prices have once again failed to challenge the $50/barrel area with conviction.

The impulsive drive higher this year now looks set for a deeper AB=CD correction which could eventually target the $36/b area (61.8% fibonacci retracement).

Management and risk description

Once the first target is reached, stop can be moved to entry and focus turned to the second and third targets.


Entry: sell Oilusnov16 at current levels ($46.80/b).

Stop: A break above $50.00/b.

Target: $41.50/b, $39.25/b & $36.25/b.

Time horizon: 1-3 months.

Daily chart 
Source: Saxo Bank
Weekly chart
 Source: Saxo Bank

— Edited by Martin O'Rourke

Non-independent investment research disclaimer applies. Read more
31 August
goldfinger goldfinger
Great call Steve, I only just caught it before it started moving lower.
31 August
AlexF AlexF
Your first PT on WTI is 41.5 ?
01 September
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Thanks Goldfinger. Yes Alex this is a medium term trade idea. My short term targets are available here -
01 September
AlexF AlexF
Thanks Steve clear


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