NEW YORK (TheStreet) -- Prices of the nearby crude oil futures contracts have been "bumping around" the low $40s for weeks (see the chart below). Meanwhile, our favorite momentum study has been moving sideways in a tighter and tighter range.
We get an unscientific sense from reading media reports and various market letters that traders and analysts seem to be mostly bearish on crude oil (and metals and commodities in general). Sometimes when too many market participants and analysts are negative on a security, it is more likely to surprise on the upside. Not sure what it is, but maybe it is just that players are caught "offsides" and they need to quickly adjust their positions. We are not suggesting you go long on futures or even ETFs based on energy contracts, however; we think that there might be more chance for crude oil futures to trade higher the next several weeks. Shorts, be on alert.
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