My comment last night via my research note, Tuesday 12-Sep-2023, 20h59
Brent Crude Oil. We have seen a significant move over the past 9 weeks, with Brent higher from $75 to $92. The short term trend is strong with the commodity recently having cleared resistance of a 9-month base. While the trend is up, traders should are alerted to the momentum indicators which may indicate the price nearing overbought conditions, with the 7-day RSI at 80 and the 14-day RSI at 73. In the short term, the buy/long side reward-to-risk is becoming less appealing vs prior weeks.
(The insert highlights my view on 03 July which was also accompanied by several energy ETFs. Since then, the energy sector has outperformed each of the other 10 major sectors in the S&P).
For more research insights, including trade ideas, get in touch with me today.
Brent Crude Oil. We have seen a significant move over the past 9 weeks, with Brent higher from $75 to $92. The short term trend is strong with the commodity recently having cleared resistance of a 9-month base. While the trend is up, traders should are alerted to the momentum indicators which may indicate the price nearing overbought conditions, with the 7-day RSI at 80 and the 14-day RSI at 73. In the short term, the buy/long side reward-to-risk is becoming less appealing vs prior weeks.
(The insert highlights my view on 03 July which was also accompanied by several energy ETFs. Since then, the energy sector has outperformed each of the other 10 major sectors in the S&P).
For more research insights, including trade ideas, get in touch with me today.