Crude is now in accelerated downtrend: Ashwani Gujral, ashwanigujral.com
It is too late to cut longs in crude and chances are it is now in an accelerated downtrend.
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| Updated: Ashwani Gujral, Chief Market Strategist, ashwanigujral.com in an interview with ET Now talks about crude.
ET Now: What do you make of the sell off in crude and do you think it is time now to cut longs in crude, in fact for that matter in all commodities?
Ashwani Gujral: It is too late to cut longs in crude and chances are it is now in an accelerated downtrend, particularly NYMEX where if 90 is broken, the next level is probably closer to 84-85. The Brent premium will now also crash fairly fast. So most commodities are in fairly serious downtrends which is probably a good thing and which is why maybe institutions have started buying a but yesterday because they will always move ahead of the market. So chances are that commodities should continue to move lower if Europe and US continue to go through a slowdown.
ET Now: What do you make of the sell off in crude and do you think it is time now to cut longs in crude, in fact for that matter in all commodities?
Ashwani Gujral: It is too late to cut longs in crude and chances are it is now in an accelerated downtrend, particularly NYMEX where if 90 is broken, the next level is probably closer to 84-85. The Brent premium will now also crash fairly fast. So most commodities are in fairly serious downtrends which is probably a good thing and which is why maybe institutions have started buying a but yesterday because they will always move ahead of the market. So chances are that commodities should continue to move lower if Europe and US continue to go through a slowdown.
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