Oil price action update
June 25, 2020 Leave a comment
On June 20th (5 days ago), I wrote that Brent should (from $41.90) push slightly above $43 and warned it will be a head fake, as it should reverse direction and move lower.
Two days later, Brent Crude traded up to $43.90 and in the past 36 hours has dropped back to $40. That’s a quite a notable 10% price reversal.
What’s next?
My June 20th post contains the macro views while I’m getting positioned to buy selected oil securities at lower prices.
I didn’t trade this Oil short or reversal because my overarching theme is that I am bullish on Oil over the long term.
My analysis suggested being careful and not add to positions at what I saw as an interim, short-term high which Brent can’t seem to break for the time being. I felt I could buy at cheaper prices if Brent fails to close above $43 on a “weekly” basis.
June 25, 2020
by Rob Zdravevski
rob zdravevski's blog 