The man who accurately predicted four market crashes to the exact date told Business Insider about his calendar prediction for when oil prices will start to significantly slump again.
Sandy Jadeja is a technical analyst and chief market strategist at Core Spreads.
Technical analysts look at charts to pinpoint patterns in various markets and asset classes. From that, they forecast which direction prices are likely to move.
They can’t tell you the reasons why there will be a big market movement, only that there is going to be one.
He says there is specific time period to watch out for.
“Interestingly if we take a look at the chart [below], we can clearly see the technical indicator on the lower portion of the chart showing a potential move to lower prices. This is a well-known seasonal effect that many commodities tend to follow and can be utilised for profitable trading,” said Jadeja to Business Insider.
“By observing data patterns we also note that there is an 80% probability of lower prices fromJuly 2, right through to August 18. These type of patterns can be very useful to short term traders who are either looking to profit from short term trading opportunities or the longer term trends as shown on the chart.”
So basically, there is going to be significant weakness for the next 3 weeks:
As detailed before in a previous article on Business Insider, Jadeja has significant success with predicting when markets are going to crash, bottom out, or rise again. He also told us about key dates that equity markets will see a downturn. You can read about those predictions here.
However, oil is a tricky one. Oil prices have slumped from over $110 per barrel in June 2014, and are now currently trading around the $45 per barrel mark. At one point this year, it was touching $20 per barrel. So considering the current level of oil, it looks like prices are in a recovery.
But Jadeja says there will be a period of further downside trading which could provide a good opportunity to short sellers — people who bet against a company or assets performance and profit when the company stock or assets fall.
“At Corespreads.com traders can benefit from tight spreads by taking a view on this commodity and seeking to benefit from falling prices if this downtrend continues. Trading on commodities and other global markets allows an individual to profit from both rising and falling prices. Unlike investing where profits are accumulated by upside moves only, commodity trading can be beneficial as long as strict money and risk management tools are employed and both of which Corespreads.com offer to traders,” said Jadeja.
“But traders should note that past performance does not guarantee future certainty and even with all of the historical certainties we have the markets of today are increasingly volatile and this can be both a double edged sword if not treated carefully. Right now traders should observe breakouts below recent lows to confirm the trend is still in motion. Until we see a clear break above $50.23 the bears are likely to remain in control.”
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