Oil Is The New Silver; Time To Short?

James FoordInvesting Group LeaderFollow5ShareSavePlay(5min)CommentsSummaryOil is experiencing a rally driven by geopolitical disruptions, not structural supply-demand imbalances.Technical signals, including overbought RSI and bearish candlestick patterns, suggest a potential shorting setup similar to the recent silver top.Current price strength is tied to the Iran conflict, but fundamentals point to eventual normalization and lower oil prices.A new high in oil could present a compelling short opportunity, with fundamentals and technicals aligning for a bearish outlook.This idea was discussed in more depth with members of my private investing community, The Pragmatic Investor. Learn More » peshkov/iStock via Getty Images Thesis Summary Oil’s (USO) current run is reminiscent of what we saw take place in the silver market only a few weeks ago. Back then, I highlighted the dangers of shorting silver while also warning that a potential top was likelyThis article was written byJames Foord27.46K FollowersFollowJames Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.

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