Crude oil markets could be on the verge of a crash. A downtrend could now force trend followers to liquidate a massive -40% of their peak size, notes Daniel Ghali, senior commodity strategist at TDS.
Trend followers are almost forced to liquidate -40% of their maximum size
“Crude oil markets may be on the verge of a crash. The downside in crude oil markets has remained relatively subdued over the past few weeks; a downtrend could now force trend followers to liquidate a massive -40% of their maximum size, suggesting that the window for large-scale algorithmic liquidations is now open.”
“With our global commodity demand gauge trending sharply lower, we expect downward pressures to continue to build without any additional boost to supply risk.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
