Crude Oil Breaks Out

June 5, 2021

So there you have it folks, here's your Crude Oil breakout.

It was bound to happen right? It kept pushing up against those former highs.

This is now the market telling us that demand has finally absorbed all that supply near 66.

So by my work, 76 is next. That level represents the October 2018 highs, right before things really started to fall apart.

If that's what happens, then Energy stocks should do well in that environment. These are the ones that have my attention:

From a risk management perspective, this one is easy.

If Oil is not above 66 then we cannot be bullish.

If the Energy Index Fund $XLE and the Explorers & Producers $XOP are not above their March highs, then we cannot be bullish.

For me, this one is that binary.

What do you think?

What are we missing in all this?

And also make sure to check out this week's Commodities Report and Chartbook.

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