It appears that RIg is attempting to get out of the 3.70 resistace. Its made multiple attempts now, with the last one quickly being rejected. It appears the stock is moving slowly towards resistance, which should be enoug energy to smash through. Now it needs a catalyst.
Oil was pushed down after europoors decided to go on lock down again. There was hope the opec + meeting would push oil past (WTI) past 62, but that failed, as seen by todays (4%) down day in XLE. There is no more major catalyst, whcih could send the stock higher. SO what will push the stock higher?
1. Higher Demands is seen coming this summer.
2. 90% of American should be vaccinated this month ( have the option to get vaccinated)
3. European lock downs should end this month, whcih should bring some excitement to the oil market.
Downsides?
The major downside that I see is OPEC+ increasing supply faster than demand rises. They decided to raise supply in anticipation of higher demand, but if they supply and demand is matched or undermatched we would soon see supplies and inventories rise
above the 5 year average. While not a sure trade I think it offers a handsome return to anyone who dares trade this.
Oil was pushed down after europoors decided to go on lock down again. There was hope the opec + meeting would push oil past (WTI) past 62, but that failed, as seen by todays (4%) down day in XLE. There is no more major catalyst, whcih could send the stock higher. SO what will push the stock higher?
1. Higher Demands is seen coming this summer.
2. 90% of American should be vaccinated this month ( have the option to get vaccinated)
3. European lock downs should end this month, whcih should bring some excitement to the oil market.
Downsides?
The major downside that I see is OPEC+ increasing supply faster than demand rises. They decided to raise supply in anticipation of higher demand, but if they supply and demand is matched or undermatched we would soon see supplies and inventories rise
above the 5 year average. While not a sure trade I think it offers a handsome return to anyone who dares trade this.