Crude oil has revisited its January 2017 high of USD58 last 2 days. If it can break above this level as well as the psychological USD60 mark, crude oil price is likely to continue its upleg.
What is more amazing than the strong recovery in crude oil price is the change of tune of among the pundits. Citibank came out with an article highlighting the potential oil squeeze in 2018! Goldman Sach demand forecast for oil is also now being questioned! Notwithstanding the bullish calls, crude oil recovery hinges on successful breakout above USD60.
Chart 1: Brent's daily chart as at Sep 26, 2017 (Source: Stockchart.com)
In a market that is deprived of trading ideas, the rally in crude oil price has not gone unnoticed. In the past few days, we have seen sharp rally among the penny O&G stocks. I have appended below the charts of some spectacular rally. You can see that some are knocking on resistance. Be careful!
Chart 2: Hibiscus's daily chart as at Sep 26, 2017 (Source: Malaysiastock.biz)
Chart 3: Reach's daily chart as at Sep 26, 2017 (Source: Stockchart.com)
Chart 4: Carimin's daily chart as at Sep 26, 2017 (Source: Stockchart.com)
Chart 5: Icons' daily chart as at Sep 26, 2017 (Source: Stockchart.com)
Note: I am using Brent chart because I have concern about WTIC price movement after the recent 2 hurricanes had hit oil installations in the region.
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