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Crude makes a bottom extension

Nymex crude oil made a bottom extension at a daily-scale yesterday:

Profits on current shorts should now be protected, either by covering or by writing puts. We expect that there will be another opportunity to sell short within the next few weeks but a rally or pause in the downtrend is now possible. Aggressive traders could reverse and go long here but the better contract to trade from the long side is probably Brent, as the fresh energy supplies from fracking have not yet spread out of the US into the rest of the world.