Oil Prices Likely to Continue to Gain
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US Oil Contract– Retail CFD traders are net-short the USOil contract, which tracks the NYMEX WTI Crude Oil contract, and a contrarian view of trader sentiment acts as signal that oil prices may continue higher. Indeed our data shows traders most recently turned net-short as USOil traded above $40 through mid-April.
It serves to note that positioning has moderated somewhat since last week—long positions are up 21 percent while short positions have fallen 18 percent. Yet 70 percent of total open positions in our sample remain short USOil. Until we see a much more sustained shift towards crowd buying, we see little reason to change our bullish trading bias.
See next currency section: S&P - S&P 500 Remains a Buy until this Changes
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.