Oil has risen strongly above the $60 level. The price action has been very bullish with closes near the highs of the day.
I believe the reasons for this is anticipation of demand rising again as nations opens back up and vaccines are distributed again, followed by stimulus being distributed.
The market is pricing in Texas production cuts as this will curtail supply.
"As much as 1 million barrels a day of crude oil production has been affected by the winter storm, Bloomberg reported, while power outages have also had an impact on pipeline flows and refinery operations."
In addition, there was not great investments made in increasing production which will hamper supply as well.
As far as I can tell, I anticipate us trending higher and perhaps attempting to penetrate the $65 level. If the price were to pull back I think we will see an attempt to defend $60 followed by strong support at $55.
Pivot examples of support can be viewed here:
Lastly we can see strong bullish volume, followed by the oscillators clearly displaying a rise into overbought territory. Even in a bull market, we typically see some sideways chop as the price tends to meet the mean before heading higher. This process is often why bull flags form. That tendency for mean reversion.
Good luck trading the widow maker friends! Hope you make a million.
I believe the reasons for this is anticipation of demand rising again as nations opens back up and vaccines are distributed again, followed by stimulus being distributed.
The market is pricing in Texas production cuts as this will curtail supply.
"As much as 1 million barrels a day of crude oil production has been affected by the winter storm, Bloomberg reported, while power outages have also had an impact on pipeline flows and refinery operations."
In addition, there was not great investments made in increasing production which will hamper supply as well.
As far as I can tell, I anticipate us trending higher and perhaps attempting to penetrate the $65 level. If the price were to pull back I think we will see an attempt to defend $60 followed by strong support at $55.
Pivot examples of support can be viewed here:
Lastly we can see strong bullish volume, followed by the oscillators clearly displaying a rise into overbought territory. Even in a bull market, we typically see some sideways chop as the price tends to meet the mean before heading higher. This process is often why bull flags form. That tendency for mean reversion.
Good luck trading the widow maker friends! Hope you make a million.