Jim Cramer Calls For Oil To Rocket: “Could Hit $70-80” $UWTI $DWTI $USO $DUG $XLE $OIL

Looking at the weekly chart of West Texas Intermediate Crude and the Commodity Futures Trading Commission’s weekly Commitment of Traders report, Garner came up with a pretty stunning revelation. The CFTC report tells investors exactly how the major players are betting in the oil futures market, including the big institutional money managers who tend to drive the markets.

That is why Cramer sought the insight of Carley Garner. She is a technician, co-founder of DeCarley Trading and colleague of Cramer’s at RealMoney.com. Garner has a successful history of predicting the trajectory of crude on “Mad Money” and spotted the bottom in crude and the volatile events following afterward.

So where does Garner think oil is heading next?

Garner pointed out that during the recent decline in oil, large speculators unloaded approximately 40 percent of their bullish holdings. This is a good thing because back in July, big money was way too bullish on oil with a net long position of 328,000 contracts. Last week that dropped down to roughly 200,000 futures contracts.

Garner thinks this is a wonderful sign for oil, as in recent years when net long positions on crude drop to that level the selling will dry up and prompt a rebound.

And while she cannot rule out another dip down to the low $40s or high $30s, Garner said as long as crude holds above last week’s lows, oil will find its footing and continue to climb higher. Ultimately she expects it to recover toward $62.50, and if it breaks that level then she wouldn’t be surprised to see it hit the mid $70s or low $80s.

“Given that she nailed the decline in oil, I wouldn’t be surprised if she is right again, so you better start lining up some oil stocks to start buying if we retest last week’s lows,” Cramer said.

Originally Aired: Tuesday, 1 Sep 2015 | 6:41 PM ET
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