Oil has been one of the more traded markets this last couple of months giving a white knuckle ride as the price of oil fell about 60% before finding some demand at around $46 (in Brent) in January. Since then, oil has risen to $69 giving the bears a run for their money.
OPEC are said to be predicting that Oil will remain below $100 until 2025 according to a draft report seen by The Wall Street Journal. In another scenario, the report warned that crude oil could be as low as $40 a barrel in 2025. Its great to see that the experts can agree a forecast for oil!
Well, while the experts hedge their bets, our players are forecasting more upside for oil, at least in the short term. The chart below shows the global sentiment of our players on this market. We’ve started the week with a net bullish bias on this market but it’s early in the week yet so things could change
The Longer Term View
The longer term chart below shows some interesting levels on Brent. Sellers have already come in at around the 69 level where the ABCD pattern completes. If price can break the recent highs, the next level of interest for the shorts may be the half way back of the bearish move down at $80
Could oil reach $80 soon? Sure, if we get the same sort of price move that we did off of the lows in January.
If we drill down into a shorter term chart, we can see that price is testing the bottom of a sentiment channel and near term support at $64. If price can break and hold below the stronger support at $63, we may see some committed selling on Brent.
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