Brent at stretched percentages

I’m studying correlation, convergence & divergence activity across a cross selection of assets.

Oil is featuring heavily in my macro work.

Below is a chart of Brent Crude which shows it touching historic peak of the percentage it is trading above its 200 week moving average.

This also coincides with a visit to a longer term resistance line.

I’ll also watch currency crosses such as AUD/JPY to help me stay on the correct side of the move.

Fundamentally, sustained higher oil prices will crimp corporate earnings and stifle GDP expansion.

February 14, 2022

by Rob Zdravevski

rob@karriasset.com.au