Picking up pennies in front of a steamroller

In a business of billions, it can be a game of pennies.

Last week, Brent Crude failed making a higher high’ (breaking its October 2018 peak) by 3 cents.

Last week’s peak also coincided with other overbought readings which I list in my weekend ‘Macro Extremes’ post.

Brent needs to hold $64.76 in order to not make a ‘lower low’ in a near timeline.

Brent’s 200 week moving average is $62. The gravitational pull of mean reversion should be honoured.

My bias is for lower oil (and other energy) prices, at least towards the $66 mark and we’ll assess the next move later.

November 5, 2021

by Rob Zdravevski

rob@karriasset.com.au

#brent

#oil

#crude