Crude Oil breakout to the upside
In an earlier (longer range) post, Crude to spike over USD150 this time..., Crude oil, energy were already earmarked for an upside spike in the coming weeks to months.
Yesterday, due to a EU proposal to have a Russian oil ban including an embargo on crude in six months, it sent prices rocketing over 5% for yesterday. This rise was probably fueled further by FOMC's decision not to raise rates by more than 50 basis points. Some ambiguity in the interpretation but it was overall viewed as positive for demand, etcc.
The close was nicely above the gap resistance, and so far in Asian trading hours appear to be continuing the uptrend, keeping well clear of the gap range reopening (yellow box)
Based on shorter term projections, the triangle breakout targets USD126 in mid-May. MACD is supportive with a widening above the zero line. We have to wait and see if the acceleration picks up over the next two weeks.
Short term target close USD126
Longer term target USD165
Please be prepared, a lot of inflationary pain will flow downstream...
Yesterday, due to a EU proposal to have a Russian oil ban including an embargo on crude in six months, it sent prices rocketing over 5% for yesterday. This rise was probably fueled further by FOMC's decision not to raise rates by more than 50 basis points. Some ambiguity in the interpretation but it was overall viewed as positive for demand, etcc.
The close was nicely above the gap resistance, and so far in Asian trading hours appear to be continuing the uptrend, keeping well clear of the gap range reopening (yellow box)
Based on shorter term projections, the triangle breakout targets USD126 in mid-May. MACD is supportive with a widening above the zero line. We have to wait and see if the acceleration picks up over the next two weeks.
Short term target close USD126
Longer term target USD165
Please be prepared, a lot of inflationary pain will flow downstream...
