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Andreas Zanin
Analysis | November 24, 2020

KTM Commodity Weekly: The bar has been just run higher

Anchor pull, anchor push-repeat as needed- that is the theme happening in the Brent crude oil price. We feel an excellent chapter in the ongoing Brent story. We only need a weekly close confirmation above the $46.60 level.
Week 48 opened with another bullish candle on the weekly chart. This is the fourth week the price is trending higher.

Earlier, we ran a headline “Three technical factors and one fundamental factor firing up the Brent.” Now we are adding one more key bullish technical factor. If you observe on the weekly chart, the price finally closed above 50MA. This happened for the first time since January 2019. What does this mean to Brent oil price? The answer is our last week’s article headline. “Forget about $50, get ready for $55 and $58-$60”.

Vaccine news raises the risk-on sentiment on a massive scale. The magnitude rise of the risk assets could reveal how big the vaccine news was. There is a lot in the markets now. Much clarity on the US political landscape, latest vaccine hopes, and easing of Covid death fear are the key factors that are driving the markets. The latest news also brought forward the V share recovery theme.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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