The price of WTI crude oil could be headed for a jump of between 20 percent and 50 percent, judging from a bullish breakout pattern that suggests a major rally could be coming for an asset, and that has occurred just three times for crude this century, an equity strategist told CNBC this week.
“Crude oil has seen what’s called a golden cross on its weekly chart,” Matt Maley, Equity Strategist at Miller Tabak, told CNBC’s “Trading Nation” program.
The so-called golden cross appears on a chart when the short-term moving average of an asset crosses above its long-term moving average. The gold cross chart pattern points to a potential for a major rally.
“That’s only happened three times since the beginning of this century and each of those three times has been followed by a very strong further rally in crude oil, anywhere from 20%-50%,” Maley told CNBC.
According to the strategist, the energy sector looks good if the market holds up and continues to rally. The energy sector has outperformed the overall market by a large margin since last October, even with the pullback since July, Maley also said. If the market holds, energy stocks could do really well in the fourth quarter, the strategist added.
Despite lingering concerns about the Delta variant, major investment banks continue to be bullish on oil, although not all are as bullish as Goldman Sachs, for example.
Goldman’s analysts kept their forecast for Brent Crude prices at $80 a barrel at the end of this year, although they expect the Delta variant surge to have a transitory drag on oil demand over the next two months.
“Looking beyond the Delta headwind, we expect the demand recovery to continue alongside rising vaccination rates,” Goldman Sachs said in a note in the middle of August.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com:
"Oil" - Google News
August 28, 2021 at 05:00AM
https://ift.tt/2WAr9Rn
Oil Could Be Primed For Up To 50% Rally, Strategist Says - OilPrice.com
"Oil" - Google News
https://ift.tt/2SukWkJ
https://ift.tt/3fcD5NP
Bagikan Berita Ini
0 Response to "Oil Could Be Primed For Up To 50% Rally, Strategist Says - OilPrice.com"
Post a Comment