Could Crude Spike to $90-100 A Barrel in 3 Months?
With the latest news coming out of Saudi Arabia as a result of the recent drone attack impacting 50% of their oil production, many speculators are hinting that oil will certainly gap up 5-10.00/barrel with the potential for crude to hit 90-100.00.
This gap up (+5-10.00) could attract significantly more buyers, and a ton of bullish volume from short covering. Speculation could drive crude up significantly.
Even though this represents only 5% of the world supply, algo bots buy and sell of headlines - not details. Further, there seems to be some sort of rapid escalation from Washington (nothing by Trump yet) from Graham and Pompeo hinting at some sort of "retaliation". Iran has also responded to Graham/Pompeo's comments of blaming Iran, whom have responded that they are "ready for war".
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For those who have been following the oil and gas sector, many of the charts upon deep analysis are due for a big break-out and this could be the much needed geopolitical issue.
Further along, I expect a retracement of crude down to the trend-line of around $51-55.00 from where-ever it spikes from before spiking once again late 2020 just before the likely global recession in late 2020 before falling rapidly sometime in 2021.
This will likely provide for a gap down in the general markets on Monday, with a gap up on Gold and Silver. The general markets (Dow, SP, Nas) have been incredibly overbought and this might be the negative news to provide for quite the sell-off depending how Trump responds.
- zSplit
This gap up (+5-10.00) could attract significantly more buyers, and a ton of bullish volume from short covering. Speculation could drive crude up significantly.
Even though this represents only 5% of the world supply, algo bots buy and sell of headlines - not details. Further, there seems to be some sort of rapid escalation from Washington (nothing by Trump yet) from Graham and Pompeo hinting at some sort of "retaliation". Iran has also responded to Graham/Pompeo's comments of blaming Iran, whom have responded that they are "ready for war".
--
For those who have been following the oil and gas sector, many of the charts upon deep analysis are due for a big break-out and this could be the much needed geopolitical issue.
Further along, I expect a retracement of crude down to the trend-line of around $51-55.00 from where-ever it spikes from before spiking once again late 2020 just before the likely global recession in late 2020 before falling rapidly sometime in 2021.
This will likely provide for a gap down in the general markets on Monday, with a gap up on Gold and Silver. The general markets (Dow, SP, Nas) have been incredibly overbought and this might be the negative news to provide for quite the sell-off depending how Trump responds.
- zSplit
Conservative price prediction before downtrend to trend-line: 72-75.00
Optimistic price prediction before downtrend to trend-line: 88-91.00
If some sort of "war" starts off the backs of this Crude could spike to 100.00 or more.