Long-term trends and behavioral tendencies likely to influence the Crude Oil market in 2017

The January 2016 bottom was fairly normal from a long-term perspective… a case of “oil being oil.”

A convincing move above $52 would complete a Head & Shoulders bottoming process, suggesting an initial target of $62 and a long-term objective toward $100.

Energy stocks are well-correlated with the price of crude, and are now fairly priced versus the historic relationship.

 

January 2016 was “normal” by historic standards

Head & Shoulders bottom?

Energy stocks versus crude oil

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