It is sad that the most important nation in the world - once the global policeman - is now a rogue nation. Yesterday the U.S. announced that it would impose sanction on any nation that imports Iranian oil (
). I equate this action to the invasion of Iraq by George W Bush in 2003.
Politics aside, crude oil has just broken above last 2 weeks highs of USD72.00 and put in a gain fo USD2.07 to close at USD74.04. It came close to testing the resistance at the horizontal line at USD75.00.
The current breakout move is a strong move based on rising ADX. Notwithstanding a short-term pullback, I believe this move could eventually test USD80.00 before a more meaningful correction. Thus, I believe we may see another round of play in our O&G sector.
Chart 1: BRENT's ...
Read the full post on nexttrade