Oil Crash? Not Just Yet. [Triple Top(reversal)]
Possibility for a triple top. There is no reason for Oil to crash just yet. With Oil in heavy demand and in low supply there should still be another leg up for crude. Especially with China re-opening from their strict lock down to enjoy the last bit of their summer season. However, keep in mind that the energy sector is not immune to stock market conditions despite record level prices. We got a feel for that early this month when global equities crashed and dragged the energy sector with it. With the energy sector reporting record breaking earnings since the 1980s do you think Energy Companies should still be priced down with tech companies that have underperformed in the past year? The answer is no despite the energy run up all the gains have been erased since March. Which could mean that Energy companies have a lot of catching up to do in terms of stock pricing or they will just go parabolic during earnings season.
Trade active:
Back to $107 this could be the start of a parabolic move up for July just like we did during late February 1st week of March.
Trade active:
We are at $109 Oil price and managed to escape the $106 bearish support line which is very bullish for Crude right now. Expect crude back at $114 by end of this week so we can look at $120-$130 crude by early July.
Comment:
We need to stay above $108 price range by the end of this week in order to see a big short squeeze for early July.
Comment:
A well respected commodities trader has just shorted Oil, but my gut feeling along with my analysis says we are going higher for the month of July. OPEC will raise prices for Oil in July and the realization of the supply crisis will launch the price of oil in the coming week or 2, mark my words.
Comment:
We are at $106, lost $108 keep support. Its looking really bad but I will hold out. Still betting that Crude turns around and rebounds for next week.
Comment:
$108 regained! Their is still hope and with Oil companies previewing record earnings July should be a good month for the energy sector. I expect nothing but good for the coming weeks.
Order cancelled:
This unprecedented crash has stopped me from being bullish on this month's outlook. I will sell when we get a dead cat bounce(which we will have by Thursday). a 10% random drop on a day is too risky too keep going on with this trade. Summer oil record prices and its still declining with leading bear market indicators which might cause this commodity to crash even more outweighs the rewards for now. $108 support was just a false illusion I am sad to say. No more TA for crude from this point on. I will however stick to 1 energy company in regards to their record profit for this end of quarter.