This chart of the weekly WTI contact poses a interesting question. The price of WTI looks to finish positive for the first time in a month and third time in the past two months. The weekly candle is bouncing off the lower Bollinger Band. The bands width is contracting suggesting a big move is in the future, while the Accumulation/Distribution has made a V bottom while the Coppock Curve is rising.
If WTI tests the mid-point of the Bollinger Bands that would suggest a price of around $50. What I am curious about, would a $50 price just be current prices plus a geopolitical risk premium? Or an actual rally in oil, which could eventually also include a risk premium and test that upper Bollinger Band around the high $50's.
Alternatively, the price could break down out of the range.
Either way it seems a sizable move in WTI prices is on the horizon.
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