Oil Bottoming Rally

crude_oil

  • Record short positioning from Hedge Funds looking to unwind
  • Demand remains strong while Supply problems are being discussed
  • Dovish Central Banks are supporting higher oil prices to stabilise the industry
  • Technically, a short term bottom may well be in place
  • Multi month low (see chart) showing potential reversal
  • Weekly chart show price action is coiling up for a move higher
  • A break and close above $ 33 could set off seasonal “short covering” rally
  • Short to medium term resistance targets are highlighted below ($ 34 / $ 37.5 and $ 43)
  • Only if price reject the first resistance hard then a lower low cannot be rule out
  • However, the Risk Reward has shifted in favour of going long

US Oil

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Weekly

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