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Crude oil headed back to $60?


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This article is from our interview with CNBC yesterday:Read article/Watch interview

If you are reading this post from Barchart.com the links do not work, we encourage you to visit our site where you can find updated videos and research under the research section. www.BlueLineFutures.com

Crude oilprices were under pressure on Tuesday,falling 3 percenton rising U.S. output forecasts and global demand concerns.

Investors were also looking ahead to crude oil options expiration on Wednesday, which could prove to be a near-term bullish catalyst for the commodity that's seen a bounce over the last month, according to Bill Baruch of Blue Line Futures. Here's why.

December is the most actively traded contract for WTI crude, Baruch said Tuesday on CNBC's "Trading Nation." Since December became the front-month contract, the commodity rallied by over 10 percent.

"As prices rose, so did the appetite for call options as investors feared missing the move higher. The market was due for a pullback into options expiration," he added.

"I'm telling clients to look for the market to stabilize for key support at $55. At this level, we want to look to buy, to go long," Baruch said.

Crude oil, which settled lower on Tuesday at $55.70 per barrel, is set to retest $58 and hit $60, he said, particularly as the commodity's futures contract expires early next week.

Bottom line: As the crude oil options contract is set to expire on Wednesday, prices could see a boost, and Baruch sees oil headed to $60.

-Rebecca Ungarino

This article is from our interview with CNBC yesterday:Read article/Watch interview

If you are reading this post from Barchart.com the links do not work, we encourage you to visit our site where you can find updated videos and research under the research section. www.BlueLineFutures.com

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About the author


Bill Baruch is President and founder of Blue Line Futures a leading futures and commodities brokerage firm located at the Chicago Board of Trade. Blue Line’s mission is to put the customer first and bring YOU the best customer service, consistent and reliable research and state of the art technology. Bill has more than a decade of trading experience. Working with clients he focuses on developing trading strategies that present a clear objective for both long and short-term trading approaches. He believes that in order to properly execute a trading strategy, there must be a well-balanced approach to risk and reward.

Prior to Blue Line, Bill was the Chief Market Strategist at iiTRADER which followed running a trade desk at Lind Waldock and MF Global.

Bill is a featured expert on CNBC, Bloomberg and the Wall Street Journal as well as other top tier publications.

 
 
Contributing author since 10/6/17 

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