After all, cutting 50 basis points is not something that happens very often, so a lot of traders are a little bit confused. It probably drives up inflation, which could drive up the price of oil, but at the same time, it could work against oil as well, because after all, if the economy slows down, and maybe the Federal Reserve is starting to see this be a thing, that works against the idea of global transportation and therefore demand of crude oil picking up. We are in the midst of trying to somewhat bottom out and you can see that on longer term charts, we definitely bounce from an area that mattered in the form of roughly $65. So even if we are going to recover, it’s probably more of a grinding higher process than anything else. Currently, the Market isn’t for Shorting(Click on image to enlarge)At this point in time, I don’t have any interest in shorting crude oil. I just don’t necessarily think that you want to jump in with both feet. I think short-term pullbacks continue to offer buying opportunities that a lot of people out there would be more than willing to take advantage of. After all, if we do see inflation, that generally follows through with commodity prices as well. Only time will tell at this is a being the case with the crude oil market, but history does suggest that perhaps it will be. Ultimately, the market had gotten to such a low level that makes a certain amount of sense that we would see a turnaround and a potential bounds as has played out over the last several weeks.More By This Author:USD/CAD Forecast: US Dollar Tests 200 Day EMA Against Canadian DollarEUR/JPY Forecast: Bottoming Out?EUR/USD Forecast: Rallies Ahead Of FOMC
Crude Oil Forecast: Continues To Recover
