Will the next short-squeeze take place on Oil?
The price of oil and gas has received a powerful driver in recent days with extreme weather conditions in the Northern Hemisphere on top of Middle East tensions over the weekend and better-than-expected macrodata.
But with 77% in a dizzying rally since the beginning of November and obviously shirt-termism of this market situation, traders should carefully open shorts.
The real short-squeeze is yet to come. Fluctuations in the US and European grades are still very measured. Simultaneously, the signal for a market reversal could be a jump of several per cent beyond the established trading ranges and the boundaries of reasonable prices.
For WTI, the upper boundary would be in the area of $64-$65 versus $61.50. Brent is now trading at $64.50, with $67-$70 being the upper level.
https://fxpro.news/daily-economic-events/will-the-next-short-squeeze-take-place-on-oil-20210218/
