CFTC: oil rout is done - TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    For the commodities sector, analysts at TD Securities offered the CFTC Commitment of Traders Report for the week ending March 22nd, 2016.

    Key Quotes:

    "Palladium specs continued to cover short positions in size, now less than half of their early year levels of 13.5K lots, which is a substantial move, but long positioning has not been added (rather declining) during the latest price rally into the 200DMA. The lack of sustained upside momentum in gold and China auto sales weakness, along with an end to the hefty short-covering, will keep prices under pressure below the 200DMA once again.

    WTI crude oil investors grew their net long positions by an aggressive 38.4 lots, which represented a 1.6 per cent lengthening of open interest. Specs modestly reduced their long exposure, but managed to grow their outright length by aggressively covering shorts. It seems they are convinced that while the upside may be limited for now due to the overly optimistic expectations that OPEC and other key producers will freeze output, they are also quite sure that oil has seen the worst of the price declines owing to lower US drilling and oil production. For now, specs seems to be expecting a correction but not another rout, which is also our view."
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