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Andreas Zanin
Analysis | February 9, 2021

KTM Commodity Weekly: Up, Up and Away

As expected, Brent crude oil reached the $60 mark, its higher-level since January 2021.  The price has been hitting the roof for the 6th day in a row, up over 10% in the past week. The structure remains bullish as higher low, and higher high patterns continue to pump the price higher.

Finally, the price close above 200MA on the Weekly and 50MA on the Monthly chart. Recent production cuts and stimulus hopes are the key factors that triggered the rally from the $53-$60 mark. Now Brent crude oil is trading at pre-pandemic levels.

Reduced oil supply and weak dollar pushed the spot prices to the highest since January 24, 2020. February marked the start of Saudi Arabia’s one mib/d production cut. In early January, Saudi surprised the oil market with a cut of 1 million barrels per day of crude production starting February.

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

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