Milan_Vaishnav_CMT_MSTA
Giá lên

BRENT CRUDE SHOWING ALL SIGNS OF INCHING HIGER IN COMING WEEKS

FX_IDC:USDBRO   U.S. DOLLAR / BRENT CRUDE OIL
Professional Technical Analysts often argue if you know your Charts well, you can see much beyond the price. It is sometimes wonderful to see that even if one is not completely aware of the fundamental inputs; Market Participants know it all and it all gets discounted in the price. In other words, Charts reflect all. The fundamentals picture, the psychology and the consensus of the Market Participants.

Once such good example is the Brent Crude. The below picture shows how the total Oil inventories of the OECD countries peaked in 2016 and after that it shows how consistently it has dropped ever since. When compared against their 5-year averages, the OECD stocks are seen consistently reducing and very near to getting into negative.

One would not require Einstein’s brain to understand that the glut of stored oil among industrialized economies – which helped keep prices low for years – has shrunk after production cuts by OPEC and Russia. This has not only set prices higher but it is likely to push it higher significantly over coming week.

This gets wonderfully reflected on the Technical Charts. Let us examine the Weekly Technical Charts of Brent Crude and see how wonderfully it corroborates the above picture and reflects all that we discussed above.

The above Chart gives several indication which point towards up move in prices of Brent Crude over coming weeks.

• A Golden Cross is seen with 50-Period Moving Average crossing the 200-Period Moving Average from below. This often signals initiation of a prolonged up move in prices
• After good accumulation, a big white candle appearing near the 20-Period Moving Average point towards attempt for a fresh break out.
On Balance Volume – OBV is moving towards a fresh high while the prices consolidate. This shows inherent buoyancy.
• Prices ended above their upper Bollinger band . Though some temporary retracements inside the bands may be seen but this also point towards likely initiation of a fresh up move in prices.

It would be no surprise if we see Crude prices moving higher over coming weeks.

(Milan Vaishnav, CMT , MSTA is Consultant Technical Analyst at Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia))

Milan Vaishnav, CMT , MSTA
Technical Analyst
(Research Analyst, SEBI Reg. No. INH000003341)
Member:
CMT Association (Formerly known as Market Technicians Association, (MTA), USA
Canadian Society of Technical Analysts, (CSTA), CANADA
Society of Technical Analysts (STA), UK
http://www.EquityResearch.asia
http://milan-vaishnav.blogspot.com

+91- 70164-32277 / +91-98250-16331
milan.vaishnav@equityresearch.asia
milanvaishnav@yahoo.com

VI Tiếng Việt
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Trang chủ Bộ lọc cổ phiếu Bộ lọc Forex Bộ lọc Tiền điện tử Lịch kinh tế Cách thức hoạt động Tính năng Biểu đồ Quy tắc Áp dụng Người điều hành Giải pháp cho Website & Nhà môi giới Widget Thư viện Biểu đồ Chứng khoán Yêu cầu tính năng Blog & Tin tức Câu hỏi thường gặp Hỗ trợ & Wiki Twitter
Hồ sơ Tùy chỉnh Hồ sơ Tài khoản và Thanh toán Ticket Hỗ trợ của tôi Liên hệ Hỗ trợ Các ý tưởng đã đăng Người theo dõi Đang theo dõi Tin nhắn riêng Trò chuyện Đăng xuất