Trading Nation

China will call crude oil’s next move: Traders

China to call crude’s next move?

Want to know what will happen to the price of oil? Just watch China.

So advise macro strategist Boris Schlossberg and technical analyst Todd Gordon

China is "the marginal player in the market at this point and they're also the fastest-growing oil market in the world, and so they have a big, big impact on oil demand going forward," Schlossberg, of BK Asset Management, said in a Wednesday interview with CNBC's "Trading Nation."

Read More China heads for record crude buying year

An employee directs a vehicle toward gas pumps at a China Petroleum & Chemical Corp. (Sinopec) gas station in the Zhujiang New Town district of Guangzhou, Guangdong Province, China.
Brent Lewin | Bloomberg | Getty Images

"I think the two data points — Chinese growth and oil prices — may correlate for the next couple of quarters, as the market looks for that to be the key tell as to where the price of oil goes," Schlossberg continued.

Schlossberg's case is supported by the charts, says Gordon. A comparison between the popular (FXI) ETF tracking Chinese stocks and the (USO) ETF tracking oil shows that the two "are almost indistinguishable," the technical analyst said Wednesday.

Both Schlossberg and Gordon see Chinese growth and oil prices diminishing alongside each other.

"I think those halcyon days of 10 percent growth are gone, and therefore I think that uptake in demand for oil pretty much doesn't exist," Schlossberg said.

Translation? Further losses could be ahead for the already-crushed commodity.