This is one of the most powerful bullish crude oil pattern I have seen in years. 💪 🔥
The 3 Monthly chart is showing some serious bullish pattern which could drive oil price to $100 or even more.
Even the monthly chart has shown uniform activity on the RSI 61.8 and going to test the Hot zone of the RSI.
What does this mean in General? World Financial market may brace up for some prosperity in many more months to come.
I don't see any bear market in near term unless this chart changes look.
Oil producing countries should focus on catching this train to enjoy in this prosperity either by investing into productivity, diversifying or hedging if price hits $120 -$150 zone.
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Its not really prosperous when the world is currently facing inflations and people not working. The economies are barely recovering from COVID and high oil prices will only increase inflation and create uncertainity. Comparing oil prices at the level in the early 2010's was more valid because most countries was thriving. Fundamentally I dont see oil maintaining this level. We shall see as its all opinion.
blacklegend55
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@Jamal92, I appreciate your macro-economics point of view on this, I agree with you. Actually, the world economy works in greedy ways. And when we say prosperity is coming again. Over 70% of that money goes to the pocket of 1% of the 1%. This lands us back to your analysis on why you may not witness true recovery in the lives of people who have recently lost jobs, it only remains the same or gets worse for them.
Jamal92
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@blacklegend55, Trump had better control on the matters when it came to oil prices. He would tweet whenever it hit around the 65 dollar mark and said it was to high and it would affect the production side of the U.S economy. Sooner or later the U.S will step in because anything that effect the all might U.S especially at its current state (HAVE YOU SEEN THE NFP report) they would find a way to get OPEC to pump more oil out. All this is as you say is only macro economics and there are many factors which makes the whole thing hurt my head.
blacklegend55
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@Jamal92, LOL. I can imagine. Higher prices will drive OPEC to pump more. Who doesn't want more money? 😁
Jamal92
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@blacklegend55, Sooner or later they will have to pump more to take advantage of these prices and with that the prices will go down over time but the recovering economies can also benefit from it being lower. WIN/WIN! Good luck on your setups mate.
in my humble opinion the prices probably will go little bit higher but no to much but the price will stay at 75 and 80 dollars. Pushing the price higher could make the whole world's pandemic recovery to stop. Something has to happen in the next days. I don't know what but it is going to be really bad for the whole world paying oil at 100 dollars with all this inflation pushing really hard.
blacklegend55
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@Jamalsammar I think it would be better crude oil prices goes higher so the world can vote in for green energy and electric cars.
Hi mate, I have just produced a similar chart that I would like to share here with you guys. As someone below has already commented in regards of prosperity I have to agree with them. There is no prosperity at all, just a squeeze to whomever is willing or afford to pay the high oil prices. I see as well chances of going to 150 bucks again but I believe we will have some correction first. Many people, citizens and western leaders are very angry to OPEC+ for not opening the taps and manipulating oil prices at their will, something illegal on a worldwide free market. Only President Trump was willing to start a campaign to sanction the cartel for this behaviour and that would have been applauded massively for these years of manipulation. I produce some quota, you produce some other and we send prices up. Is that fair? I don't think so.
We could change oil for some other commodity or product: let's say tyre makers (Bridgestone, Pirelli, Michelin, Hankok, Goodyear, Continental...) create a Cartel to decide the minimum price for their wheels because of rubber or some other excuse. Instead of paying 200-300 bucks a piece they send prices to 500+. Would you be happy? That won't be free market at all. And we can use other examples such as Internet providers (raise internet access tenfold), chips producers (Intel, AMD, Snapdragon...), etc.
Only oil producers have been "allowed" worldwide to cheat on us, to rip us off whenever they want. Again, do you think is fair? Just produce as much as you want and sell whatever the market is willing to pay like everyone does, but do not bring your "friends" to agree on quotas to manipulate prices.