Chart Of The Day: Oil Fundamentals Are Bullish But Technicals Look Weak

SourceInvesting.com
SectorOil & Gas
CountryGulf

Since both the known macroeconomic and fundamental outlooks are positive for , wouldn't it make sense to be bullish on the energy commodity? Increasing vaccinations will allow for a quicker return to a normal economy, while the Biden Administration’s fiscal policy has boosted stocks to a series of fresh records. The logical result of, not just a restarting economy but one pushed into expansion, would be the expectation that demand for the energy commodity would increase, for both travel and industry. Indeed, based on yesterday's release, in the US—the world’s biggest fuel consumer—stocks declined, which would explain today's second-day, WTI rally. Why, then, are the technicals weak, with the price of crude sitting on the cusp of a downside reversal? Oil Daily WTI has fallen out of its rising channel since the October bottom, developing a full bearish pattern beneath it, to boot. The price may have completed a rising flag, bearish after it plunged out of its bullish channel—itself a bearish indication. For...read more...