CRUDE ON EDGE

In a matter of hours Brent crude moved from 70 to 76, an almost 10% move. The world is definitely on edge and this was absolutely evident in crude oil over the last 24 hours.

The crude market has had a very bearish touch to it over the last 6 months starting April 2024, however, hitting 70 was a benchmark that was expected to have some tricks sitting inside of it...and these came out on display.

We can argue that the action perhaps signalled a structural change in the outlook, however, further confirmation would be needed to definitely conclude the same.

We would be looking carefully at price action around 72-73 level with the expectation that there can be quite a bit of whiplash here to account for the confusion that is expected at inflection points. A quick rebound could confirm a bullish couple of weeks.

So what is the strategy for now. Keep watching various time frames as the market shakes off weak hands.