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