2016.10.1806:08:00UTC+00Fxwirepro Medium Term Outlook: Wti Target extended to $68 Per Barrel

In a previous article named, “FxWirePro: WTI is likely to extend rally by another 10 percent”, available at http://www.econotimes.com/, we suggested buying WTI at then current price of $48.2 per barrel, targeting $53.5 area. However, both the price actions, as well as, the positioning in the futures market (visible in COT report) strongly suggest that the WTI might extend the gains. However, a lot will depend on the ability of the OPEC members to draft the final agreement in November that would clarify the uncertainties surrounding the deal, like who would produce how much and who would be monitoring the data effectively.

Despite all the concerns and lack of clarity, what is probably driving the optimism is the willingness to strike a deal, hence we believe that if a deal is struck, WTI has lots of upside potential in the medium term.

Trade idea:

Buy WTI at the current price of $50.4 per barrel and at dips with targets around $51.5, $53.5, $68 and finally $72 per barrel. The first target, which from the previous article mentioned above, has already been reached.