The financial markets continue to show strong volatility. Is the worst behind the equity and oil markets?
Here is their view, courtesy of eFXdata:
CitiFX Technicals warn that the worst for markets may yet to come and retains its view that October/November 2008 continues to be the best roadmap in that respect.
“As we went into November 2008 one would have been forgiven for thinking that the worst was likely behind us (that was our bias at the time). Alas, that was not to be and November-December continued to provide us with some volatile times (and in some instances all the way to March of 2009),” Citi notes.
“With respect to that October 2008 roadmap what did November hold?
Another sharp move lower in the Equity indices after a strong bounce in October. This saw the S&P fall 26% high to low within November alone (Before another bear market rally).
WTI continued its sharp fall and dropped 45% over the months of November-December (Traded 28% below the October close in November- Which would equate to below $15 in April if repeated),” Citi adds.
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