Brent: Future is Still Sunny
What happened? Brent returned to the rising channel on Wednesday by gaining 4% during the trading session…
OIL: $55 in sight - welcome back up!
Information is not investment advice
Short term
The short-term view of the WTI oil price performance gives a perfect picture of an upward march. Crossing $50 per barrel in the first week of January, it went straight to $52, made a brief correction, and reached $54 just a while ago. Does it suggest further upside? Yes. But it also suggests a downward correction. To where it may be? Let’s expand the view.
Mid term
The mid-term view shows that after the rise to $42 in August, the WTI oil price plunged to $35 in October. Since then, it has been recovering - and, eventually, exceeding - the losses. The current march from $50 to $55 is as aggressive as the initial bullish reversal in October-November. Back then, no downward correction happened after that. Largely, that’s because the upswing itself was a correction after the plunge. But now, the uptrend we are witnessing is no correction – not in the mid-term, at least.
Long term
From the strategic perspective, the price is at the doorstep of the pre-virus levels now. Yes, the oil market can celebrate full recovery. At least, from the WTI oil price point of view. $50 is where it was at the end of 2019 - $50 is what it just crossed a while ago. Therefore, any further upside potential can no longer be ascribed to the strategic recoil to the virus plunge in 2020. $50-$65 is the range of the price performance since the end of 2017 – the price is back here now. For this reason, from the mid-term point of view, dropping to $50 just to cool off is a possibility. But in the long run, whether it will make it to $65 is a question to OPEC and fundamental factors.
Gaspar Markosyan
Similar
How will ECB Drive EUR?
What will happen? The European Central Bank will present the monetary policy statement on June 22…
USD/CAD Reversal Pattern
After a notable rally all the way to 1.28, USD/CAD dropped back to 1.2730 yesterday, confirming our outlook mentioned a few days ago about the need for a downside retracement before the upside trend resumes.
Popular
Brent: Future is Still Sunny
What happened? Brent returned to the rising channel on Wednesday by gaining 4% during the trading session…
New Trend in Tech Stocks?
When Twitter Inc. and Snap Inc. posted quarterly revenue that blew past analysts’ expectations, the results bumped up the shares of the two of their larger rivals: Facebook Inc. and Alphabet Inc.
EUR/USD Holding After ECB Decision
EUR/USD managed to rise for a very short period of time right after the ECB decision to as high as 1.1798 before declining and giving away its entire gains.
Choose your payment system
