Brent Crude looks like it needs a retracement after its stellar recovery. On the weekly chart we can see that its overbought on all three signals. Oil producers need the price to stay above roughly $40 a barrel. In a controlled environment with limited exogenous impacts the price of oil should stay above $40 a barrel. That being said, $70 a barrel isn't going to work for the non-US consumer.
By early April we should see the chart reflecting a healthy retracement.
Oil producers have benefited from the recovery in the oil price and the increase in demand post lock downs. Perhaps now is the time to take profits or close out one's position in the oil industry.
Please note, this idea is shared for educational and discussion purposes only and should not result in speculative investment decisions in any asset class.
By early April we should see the chart reflecting a healthy retracement.
Oil producers have benefited from the recovery in the oil price and the increase in demand post lock downs. Perhaps now is the time to take profits or close out one's position in the oil industry.
Please note, this idea is shared for educational and discussion purposes only and should not result in speculative investment decisions in any asset class.