CRUDE ON BALLISTIC TRAJECTORY

We had mentioned that a rebound to 72-73 for Brent was in the works. However, the momentum is such that the rebound materialised around 73.5 and puts the market on a totally ballistic trajectory. It has taken out retail levels around 76-77 and appears headed much higher over the coming week.

On a weekly basis this is the strongest week in a long time and we could easily see a 100 level market given that the move has just started, though pushed on by geopolitical and energy security concerns.

Brent has been pretty much range bound between 70 and 100 over the last 2 years with no significant momentum or catalyst exerting any influence. However, that may change over the coming weeks.

Bitcoin provides an interesting contrast, which actually dropped to 60k, however, seems to be providing a good buying opportunity here. Short term or medium term remains to be contemplated.