My take on ICON & CRUDE OIL .... With 6 weeks of upsides, crude had sneaked quietly into resistance zone.
Due to present euphoria, many investors are chasing O&G counters especially those darling stocks without realizing the dangers ahead. Technical profit taking is inevitable under this present scenario.
ICON (5255) has good fundamentals no doubt. But the chart technicalies is nothing to shout about.
Sorry if I offended anyone here but what you see is what you get.
There must be a reason why Crude Oil Futures (CL= F) forward months prices are traded lower than present physical month prices.
Obviously oil traders are looking towards lower oil prices days, weeks or months ahead. This is the norm after a bullish spike. Inevitable profit takings will kick .
Stay alert ..... Do not get caught in the rain after the fireworks display are over. Darkness will fescend. Beware bros & sis ....
“Later on Monday, however, prices reversed course and were down by around 1 percent at 8:00 a.m. EDT during the OPEC+ video news conference at which Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said the extra cuts that the Kingdom and its Gulf allies had promised for June on top of their commitments would not be extended to July.”
Thats explain why the oil price is dropping. Latest news.
WTI CRUDE OIL RALLYING HARD, BUT HAS OBSTACLES IN THE WAY
WTI crude oil has been pretty much on a one-way path since bottoming in late April, but the path could get bumpier soon as confluent resistance stands in the way of the advance over the 40-mark >>> Refer to my last posting.
Oil is currently trading inside the March 9 Saudi gap that shook financial markets when they were already reeling from the coronavirus.
The gap is a rather significant hole that leaves a little more room to go before it is filled up to 41.51.
Not too far beyond that point is the June 2017 and December 2018 lows that are in almost exact alignment at 42.27/42.67, respectively. It appears likely there will be some kind of fight that develops around the 41.51/42.67 zone. It could come as quick as this week, but perhaps it takes a little longer if oil slows its roll until reaching for resistance.
From a tactical standpoint, fresh Longs don’t appear to hold good risk/reward while Shorts are still risky with oil trending higher and no significant resistance yet at hand.
That could soon change, where existing Longs are at risk of a decline developing, while Shorts gain the upper hand off resistance.
Obviously, Crude Oil Futures had intruded into a Resistance Zone. Profit takings are inevitable.
Maybank IB Research said the policy revision by Opec was sentiment positive, which would strengthens and accelerates the collective effort to correct imbalances in the oil market and provides a strong support to oil price.
I will share abit of my wisdom.. see the sell queue keeps growing? Retail is buying while sharks are slowly adding to the sell queue at 15 cents.. will never break.. good bye..
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
zhugel888
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Posted by zhugel888 > 2020-06-06 15:41 | Report Abuse
My take on ICON & CRUDE OIL .... With 6 weeks of upsides, crude had sneaked quietly into resistance zone.
Due to present euphoria, many investors are chasing O&G counters especially those darling stocks without realizing the dangers ahead. Technical profit taking is inevitable under this present scenario.
ICON (5255) has good fundamentals no doubt. But the chart technicalies is nothing to shout about.
Sorry if I offended anyone here but what you see is what you get.
Happy trading⛽⛽⛽