These are many different qualities of crude that move in sync with each other. But despite being such a highly correlated pair, they have a cycle of performance and underperformance against each other. For example, every 6-9 months, WTM makes a cycle low against BRT. A similar cycle periodicity shows on crude prices also. In three weeks, this cycle between WTM and BRENT should also bottom. And when it does, this should be accompanied by an inflexion point on crude prices too.
Individually, though prices have held above recent bottoms, basing might take some time. WTM momentum is positively non confirming (SLIDE 2) and is over reactive. BRT seems to form a corrective structure above 40 (SLIDE 3). XLE continues the sideways action. While Indian energy majors i.e. Reliance and ONGC suggest minor positivity. We have also carried OMV and VERBUND, which are near key multi year supports.
However, the American OIL majors XOM and CVX, have pushed up to key resistances. We need a clear break above respective levels to look for further upside.
Above 40 reversal on OIL does give us a good turn around case. And we continue to look higher on OIL.
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ORPHEUS GLOBAL RESEARCH
WAVES.OIL is a perspective product published once a week. The report covers BRENT, WTM, XLE (Energy SPDR), top energy stocks, Natural Gas and related FUTURES. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools and sentiment indicators.
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