Looking for interim peak in Crude Oil

Here’s a market call for you….Brent Crude is about to top out at the $78.50 level.

I’ve been bullish about the Oil price for the past year and remain so over the longer term, but parabolic advances also need a break and some consolidation.

My technical work suggests the crude oil price peaks soon and comes back to test the $64-$62 mark in the coming months.

See my 20+ year chart below. Amongst many extreme coincidences, we are also nearing a 50% move (between the 1999 low and the 2008 high) along with testing the underside of an ominous downward sloping trendline.

Anecdotally, many now are calling Oil to a $100…..and so I ask, where were they when Brent was $30 or $40….another moment of popular pundits making calls at the nutty end of a run which has seen Brent Crude Oil nearly quintuple from its $16 low in March 2020.

Ultimately, I think Oil goes to $120 – $140, in a massive ‘last’ hurrah…I’ll write more about that in a few months time.

For now, it’s time for the Oil price to shake a few people out and I love a good shakeout.

This also means having a think about your Oil & Gas equity positions.

In fact, many of them are already exhibiting weakness.

June 28, 2021

by Rob Zdravevski

rob@karriasset.com.au