From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Crude oil bulls are back in town!
They kicked the year off by pushing price back above 76 and reclaiming the upper bounds of a multi-year base. Oil is the most important commodity in the world, so it’s hard to overstate just how bullish fresh seven-year highs would be.
But we’re not quite there yet. We still need to take out the fall highs.
The 76 level marks the former 2018 highs and the breakout from a massive reversal pattern. Buyers ran into an overwhelming amount of supply here during the back half of 2021. When they did manage to reclaim those former highs, it was short-lived, and the move quickly failed.
But the move was more of a false start than a failed breakout. We’re back above this level again today.
Now that the bulls are back in the driver’s seat, can we expect to finally see crude oil at 100 in the coming weeks or months?
It’s very possible — especially given one key development in recent weeks…
Energy stocks are on fire! This is the best confirmation we could get for a breakout in crude oil. Now we just need to see it.