My holidays are over and it was nice to see that things that I 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. In the first one I was writing about my $60 expectations in WTI price and in the second one 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 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?