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Anthony Grisanti Wants To Sell The Rally In Crude Oil

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On CNBC's Futures Now, Anthony Grisanti said that the rally in crude oil is only temporary. He explained that crude oil traded higher because of tensions between Russia and Turkey.

Producing facilities were not affected by the incident and Grisanti doesn't believe that Russia is going to invade Turkey as a retaliation for Turkey downing its jet. Instead, he wants to focus on fundamentals, which indicate that supply is much higher than the demand. He is also concerned by the effect strong dollar could have on the price of crude oil and he thinks that there are no signs of OPEC decreasing production.

When the January crude oil futures contract was trading at $43.40, Grisanti suggested a short position, with a stop loss at $44.80 and a target price of $41.

Jim Iuorio said that a short position in crude oil is huge and he believes that traders with a short position must be worried about the OPEC meeting, which is scheduled for the next week. A little more strength in crude oil could lead to a short squeeze and even further move higher. He is also worried that the U.S. dollar could decline a bit and he doesn't want to follow Grisanti's trade because there could be some upside in the short term. He is bearish on crude oil and euro in the long term.

 

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Posted-In: Anthony Grisanti CNBCShort Ideas Futures Commodities Markets Media Trading Ideas

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