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Tuesday, October 03, 2017

Crude Oil: Just a Pullback

In the past few days, we saw fairly deep correction among O&G stocks. That reflects the sharp correction in crude oil prices. However the correction is not out of order. I expect Brent to drop back to its uptrend line, SS with support at USD 54-55. 


Chart 1: Brent's daily chart as at Oct 2, 2017 (Source: Stockchart.com)

If Brent can stay above the uptrend line - or consolidate around USD54-55 but violating the uptrend line - then the prospect of it breaking above the oval-shape continuation pattern is  still there. When that happens, it may launch into its next upleg.


Chart 2: Brent's daily chart as at Oct 2, 2017 (Source: Stockchart.com)

If you want to get into the O&G sector, you can do so slowly once it is fairly clear that the USD54-55 price level for Brent can hold. Good luck!

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