My holidays are over and it was nice to see that things that I’ve been writing about are mainly playing out as expected. One of them is also oil. To me it seems it can go a lot higher! There are so many bears because of an over rated shale potential or because so many people think that demand just can’t pick up. I disagree with their arguments, not only that, I take the opposite side! Also, there are bulls but who are not really bullish, rather neutral, as they think oil can’t go much higher.
I wrote a lot about my bullish thesis so many times in the last couple of months. If I focus only on the last two, in the first one I was writing about my $60 WTI price expectations and in the second I wrote an update on the 1st one. I really wouldn’t like to repeat myself, so you are very kindly invited to give them a read.
Let’s take a look at WTI Dec17 contract. It broke above an important resistance on Friday which means that the first target now becomes around $59 with a possible extension to $68.
While the price stays above $52.50 we want to be long and stay long!
For readers who don’t have a futures account, you could maybe consider buying $USO ETF. The chart looks almost identical to oil chart.
Another option is to go long $CRB ETF commodity index. It looks like it’s just clearing a very important resistance!
Or go long $XLE Energy ETF on some sign of strength, e.g. daily close above 200d SMA.
I don’t know guys, but I just can’t be bearish oil at the moment. What do you think?