Crude Oil Struggles To Maintain Weekly Gain As Irma Pressure Arrives

increases 56% WoW, favoring upside

Oil – US Crude: Retail trader data shows 51.4% of traders are net-long with the ratio of traders long to short at 1.06 to 1. In fact, traders have remained net-long since Aug 14 when Oil – US Crude traded near 4894.0; price has moved 0.6% lower since then. The number of traders net-long is 1.6% lower than yesterday and 29.3% lower from last week, while the number of traders net-short is 0.9% lower than yesterday and 56.0% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Oil – US Crude prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Oil – US Crude price trend may soon reverse higher despite the fact traders remain net-long (emphasis added.)

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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