Crude Oil weekly uptrend opportunity based On 1.00 Lot Calculation:
- OPEC+ DECIDED TO GO AHEAD WITH PLANNED 400K BARRELS PER DAY SUPPLY INCREASE, BUT SAY THAT THEY ARE READY TO ADJUST POLICY ANYTIME. GOLDMAN SACHS: Oil prices are primed for gains as Thursday’s decision by OPEC+ to proceed with planned production increases won’t derail an ongoing structural bull market. The investment bank sees “very clear upside risks”. Recent price declines, amid concern that the omicron variant of coronavirus will damage demand, have been overdone and current prices offer “compelling opportunities” to reinvest, the Goldman analysts said. MORGAN STANLEY: The impact on balances is “modest”. Decision could suggest OPEC+ not all that worried about demand impact from omicron. it also could indicate a more cooperative stance from OPEC toward the U.S. Medium-term bullish drivers still in place.
- ANALYST OPINION: Goldman Sachs Group Inc. said the market’s deficit was larger than expected, and raised its year-end Brent forecast by $10 to $90 a barrel (Crude oil ~$87 a barrel). Goldman Sachs sees the recent fall as excessive. Citigroup Inc. said it remained “outright bullish” on crude oil as well as gas, according to a commodities outlook. Prices could rise to $90 a barrel. Bank of America says that Brent oil could jump to $120 a barrel by the end of June 2022 due to global energy crunch. Morgan Stanley said prices could jump to $95 a barrel in Q1 2022. UBS hiked its forecast from $80 to $90 a barrel. COMMENTS (RUSSIA): President Putin said that oil could hit the mark of $100. The Iraqi Oil Minister also said that oil could hit $100 in Q1 2022. Rosneft, Russia’s largest oil producer, said oil prices may rise to as high as $120 by the middle of next year as the ability of OPEC+ to meet demand is at risk from under-investments and sanctions.
- ONGOING: Energy Crisis in Europe as energy prices continued to rise and Gasoline and Oil prices continued to trade close to their 7-year highs. There are reports of an energy crisis in China, too, due to lack of coal and natural gas to produce electricity power. India is also expected to face electricity power outages as their coal inventories run low too: Europe is facing an extreme squeeze for energy supplies, with gas and power prices breaking records day after day. The continent is running out of time to refill storage facilities before the start of the winter as flows from top suppliers Russia and Norway remain limited.
- OIL PRICE RECENT ACTION: Crude oil had fallen from its seven year high of $85.38 to test its lowest rate since August 2021 ($62.41), marking a downward correction of around 27%. The Daily RSI (Relative Strength Index) indicator suggests that Crude Oil has been oversold.
Crude Oil, December 3, 2021
Current Price: 67.50
Crude Oil |
Weekly |
Trend direction |
|
77.50 |
|
75.50 |
|
73.00 |
|
62.00 |
|
61.00 |
|
60.00 |
Example of calculation base on weekly trend direction for 1.00 Lot*
Crude Oil |
||||||
Pivot Points |
||||||
Profit or loss in $ |
10,000.00 |
8,000.00 |
5,500.00 |
-5,500.00 |
-6,500.00 |
-7,500.00 |
Profit or loss in €** |
8,858.73 |
7,086.98 |
4,872.30 |
-4,872.30 |
-5,758.17 |
-6,644.05 |
Profit or loss in £** |
7,537.27 |
6,029.82 |
4,145.50 |
-4,145.50 |
-4,899.23 |
-5,652.95 |
Profit or loss in C$** |
12,829.20 |
10,263.36 |
7,056.06 |
-7,056.06 |
-8,338.98 |
-9,621.90 |
* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 09:00 (GMT) 03/12/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details