Oil heading for $150-$200
The pullback in oil has either just ended, or will end after one more leg down. In my opinion, it is a higher probability that the bottom is in and that we will begin a new uptrend from here. However, there is the potential for one more leg down, which I would expect to find support along the bottom of the trend channel or at the 0.618 retrace at about $56 if it were to occur.
Oil opened 3-3.5% higher on Sunday evening after OPEC announced that it would be cutting production by 1 million barrels per day. However, oil has pared some of those gains, at the time I am writing this it is 2.3% higher. Some view the production cut as bullish because less supply = higher prices (I am in this camp), but the bearish take is that oil demand is falling sharply due to a global recession and that this cut confirms that view.
The thick black support line has served as a strong support area for more than 2 years, and I would be surprised to see oil surrender that base.
The sentiment around oil is very bearish and funds are very underweight/short the sector. In my opinion, this is a very good time to add oil stocks if you have a 12 month time horizon.
Oil opened 3-3.5% higher on Sunday evening after OPEC announced that it would be cutting production by 1 million barrels per day. However, oil has pared some of those gains, at the time I am writing this it is 2.3% higher. Some view the production cut as bullish because less supply = higher prices (I am in this camp), but the bearish take is that oil demand is falling sharply due to a global recession and that this cut confirms that view.
The thick black support line has served as a strong support area for more than 2 years, and I would be surprised to see oil surrender that base.
The sentiment around oil is very bearish and funds are very underweight/short the sector. In my opinion, this is a very good time to add oil stocks if you have a 12 month time horizon.
Nota
Bottom has held. Up we go.Nota
Likely to pause for a breather soon, but large scale pattern is fully intact.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.