Oil Could Be Experiencing A Trend Reversal: Lyxor

Price trend in U.S. likely to continue as oil is starting to give algorithmic signs it might be searching for a bottom, but such market indicators have historical win percentages that temper making a definitive call

As a Citigroup analyst projects the price of oil is set to hit $20, certain algorithmic sensors watching market environments are detecting a potential trend reversal point in oil, indicating it could move higher.

In a Lyxor Asset Management weekly review, Head of Research Phillippe Ferreira notes that several longer-term momentum managers were hurt after a trend reversal occurred in both oil and the U.S. dollar recently. Ferreira characterized the move in the U.S. dollar as nothing more than “a mere blip...