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Crude Looks Ready To Rally

Published 02/12/2016, 05:00 AM
Updated 07/09/2023, 06:31 AM

WTI Crude Weekly Chart

WTI Crude suddenly looks like it is ready to rally! I would actually buy oil with a wide stop below $26. A break above 2740 targets first resistance at 2810/15. We should struggle initially but further gains target quite strong resistance at 2880/90. Don't rule out a break above here however for 2940. Here there is a good chance of a high for the day but shorts need stops above 2980. A break higher is a good buy signal and targets strong resistance at 3040/45.

I would buy down to 2630/05 and give it a stop below 2580. A break lower however targets 2565/60, 2545/40 and would you believe 2003 year lows at 2504. Further losses targets 2002 Q4 lows at 2482. Then we are looking for 2440, 2420 and 2380.

Latest comments

I'd be careful about this even with stops the way crude has been gapping. Once again, crude was rescued by rumors about OPEC cuts that have come up it seems like at least 5 times (correlated to the bounces over the last few months) and once again will probably be shown as non-substantial. Fundamentally, the glut is getting untenable and now that some of the fracking companies are going under in the US and rigs are starting to shut down, I suspect that OPEC and the other producers will be more enamored to last a bit longer to smoke out US production and get their market share back before they relent.
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