This week’s ceasefire in the Iran conflict caused a huge reversal in the oil market. After it was announced, crude oil prices dropped over 17% overnight — falling as low as $92.
Despite tensions allegedly renewing between Iran and the United States, oil prices are holding steady (as of writing this post).
If both sides reach an agreement, it would obviously have strong implications for the oil market.
Should the conflict end, oil prices are expected to continue dropping.
Nonetheless, the question stands: Is it time for traders to consider shorting the oil market?
Even before yesterday’s ceasefire announcement, Scott Bauer was already exploring the possibility of shorting oil and energy stocks.
He discussed these potential trade opportunities on the Schwab Network Tuesday morning, along with the patterns he’s seeing in energy stocks, and other potential trade opportunities in downtrending sectors.
The analysis, insights, and strategies shared by Prosper Trading Academy’s coaches in Prosper Insider are strictly for educational and informational purposes only. All content reflects the personal opinions of the coaches and should not be construed as specific investment advice or recommendations. Any examples discussed are illustrative in nature and do not represent actual live trade signals or instructions to buy or sell securities. Trading involves risk, and individuals should carefully evaluate their own financial situation before making investment decisions.
Scott covers:
- How price spikes in the energy sector could create potential short trade opportunities
- His expectations for crude oil prices falling back to $60-$65 per barrel
- The pullback pattern he’s seeing in oil and energy stocks
- Why he believes price ranges in the oil market show it’s “stair stepping” to the upside
- Potential selling opportunities for options traders in tech stocks
