OIL: has been out performing many asset class as it is up 8.83% since the start of the week July 21. The strong rally can be contributed to OPEC extending its supply evidenced by the 7.20m bbl decline. In addition, Federal Reserve were dovish on Wednesday giving way to US dollar weakness which helps pushes commodities higher. One interesting note is that GOLD also has a very similar trend structure with OIL as of July 29, 2017
Strategy: Look out for a potential pullback to 48.00-47.00 levels before making a BUY position. Bullish Flag for oil will be at 50-51 levels.
Support our analysis services