Trading News and Research

A potential bull flag is forming on WTI near its 7-month high. Whilst the August lows currently stand in its way, we think a break above $65 is eventually on the cards given the strength of the trend.

Oil prices have been on an absolute tear since bottoming around Christmas: West Texas Intermediate (WTI) has gained more than 50% over the past 15 weeks, with Brent experiencing a 41% rally of its own over the same period.

WTI stands near a 5-month high and, whilst there are near-term signs of exhaustion, market positioning, technicals and seasonality suggest further gains could eventually unfold.

As my colleague Fawad Razaqzada noted earlier today, “it is not a question of whether [OPEC] will decide to cut supplies or not, but by how much.”

For the past month, the US crude oil benchmark, West Texas Intermediate, has been plummeting within a clearly-formed descending line, complete with short, intermittent relief rallies. After extending this sharp plunge down to key support around the $42 handle this week, Thursday saw another attempt at a modest rebound rally, which ultimately sputter...