Here are the 4 visible signs (Volatility Sentiment, Magazine Indicator, COT Percentile , Gold Oil Ratio) we look into it to predict the possible bottom in Crude.
1)Weekly Trading Sentiment turned and maintaining positive for last three weeks and Historical William VIX FIX indicator slowing down from the peak. William VIX fix indcator at historical peaks shows that volatility in crude is likely to fade out.
2)Gold Oil Ratio at all time high. High Probability of Gold-Oil Ratio mean reverts to its average. Currently Gold Oil Ratio is at 40 and last 30-year average of gold/crude ratio is 17.
Access Live MCX Crude Oil Chart here
3)COT Percentile : Money Managers are very short crude oil. It’s rare to see both producers & users and money managers short crude. Money managers have aggressively covered their shorts in silver and gold over the past four weeks.
4)This Magazine Cover Indicator indicates possible bottom in crude oil.
That's it. I'm calling the bottom pic.twitter.com/an7ZJh5JUh
— Joseph Adinolfi (@jsadinolfi) February 8, 2016