Monday, June 14, 2021

Bullish Long Term View on Crude Oil (Stay bullish on Oil stocks like Sembawang Marine, Rex International, PetroChina, Kunlun Energy etc)

 


My bullish view on the oil price and oil stocks , which as previously discussed here is likely to act as a catalyst for an escalation of the inflation scare in coming months, is based on both booming demand and, even more importantly, a growing lack of supply.

 

The One reason demand is running well ahead of supply is not only not just coming from a re-opened American economy, but also the fact that American households continue to be beneficiary of the fiscal stimulus cheques that will expire in Sep 2021.

 

Meanwhile, investment in exploration outside OPEC has been declining since 2013 when the shale boom went bust as US move aims to be carbon neutral by 2050.

 

The downturn in investment was further escalate reluctance by financial institutions to be seen funding such projects that is not climate friendly exacerbating the lack of supply. This is likely to lead to a structural decline in upstream investment.

The US Energy Information Administration’s (EIA) latest Monthly Drilling Productivity Report shows that US shale oil production has been declining month on month.

 

As discussed in my earlier post a week ago, crude oil has turned bullish on a longer term view when it broke out of its long term downtrend channel in Apr, it should be heading for its near term target at USD 75 and 83 in the medium term

 

Stay bullish on oil stocks like Sembawang Marine, Rex International, PetroChina, Kunlun Energy etc.


My bullish view on the oil price and oil stocks , which as previously discussed here is likely to act as a catalyst for an escalation of the inflation scare in coming months, is based on both booming demand and, even more importantly, a growing lack of supply. 


The One reason demand is running well ahead of supply is not only not just coming from a re-opened American economy, but also the fact that American households continue to be beneficiary of the fiscal stimulus cheques that will expire in Sep 2021. 


Meanwhile, investment in exploration outside OPEC has been declining since 2013 when the shale boom went bust as US move aims to be carbon neutral by 2050. 


The downturn in investment was further escalate reluctance by financial institutions to be seen funding such projects that is not climate friendly exacerbating the lack of supply. This is likely to lead to a structural decline in upstream investment. 

The US Energy Information Administration’s (EIA) latest Monthly Drilling Productivity Report shows that US shale oil production has been declining month on month. 


As discussed in my earlier post a week ago, crude oil has turned bullish on a longer term view when it broke out of its long term downtrend channel in Apr, it should be heading for its near term target at USD 75 and 83 in the medium term 


Stay bullish on oil stocks like Sembawang Marine, Rex International, PetroChina, Kunlun Energy etc. 


Sembcorp Marine (SGX: S51): last traded at S$0.205.

Rex International (SGX: 5WH): last traded at S$0.19.

PetroChina (0857.HK): last traded at HKD 3.57.

Kunlun Energy (0.135.HK): last traded at HKD 6.94.


 


All posts and charts are for educational and illustration purposes only

GSS Energy - Broke out from its 6 years downtrend today. Could be heading for the following targets 0.091, 0.104 and 0.122.



All posts and charts are for educational and illustration purposes only
Thursday, May 20, 2021

Distribution Price Action Pattern





I predicted BTC crash three days before it happened, based on this chart pattern.


S&P chart pattern looks similar “Three Peaks and A Rebound”

Could it happen again?



All posts and charts are for educational and illustration purposes only
Tuesday, May 18, 2021

Phases of The Market - Bloomberg Commodity Index

 

Bloomberg Commodity Index

This chart adds to my conviction that we have entered a Commodity Supercycle.
All posts and charts are for educational and illustration purposes only
Friday, May 14, 2021

Straits Times Index - Early Sign Of A Technical Breakdown

 


Straits Times Index - Early Sign Of A Technical Breakdown
This week, we are beginning to see a small crack in the STI uptrend after a stellar March-April price surge, it has spent the last four weeks consolidating in a narrow range between 3,134-3,145 and 3,211- 3,221. This week weakness it broke the support at 3150 and it also broke the support provided by the 200 Days MA . This leaves the market vulnerable to further weakness in the coming session, with the breakdown pointing to a downside target of 3,019.
All posts and charts are for educational and illustration purposes only

Ethereum - The correction have Begun!

 


Ethereum - The correction have Begun ! After a stellar 2 months breathtaking run , it’s taking a rest . First target for the short term is 3382 .

All posts and charts are for educational and illustration purposes only

Bitcoin - The Price Action is setting it up for a steep fall

 


Bitcoin - The Price Action is setting it up for a steep fall . Having consolidated between 4500 to 60,000 since feb 2021 , the price action is suggesting we are in a distribution phase where the big boys could have or are on the process of exiting . The 47224 level is a crucial one , if it breaks we could see prices heading for 39115 which coincides with the 200 days MA.

All posts and charts are for educational and illustration purposes only
Wednesday, April 28, 2021

US 10 Year Treasury - Breaking Out

US 10 year treasury breaking out after a 1 month consolidation. Stock market could correct if it challenges the last high at 1.71.



All posts and charts are for educational and illustration purposes only
Friday, April 23, 2021

Bitcoin - Bearish Price Action

Bitcoin broke its 4 months uptrend channel and is threatening to break below the Ichimoku Cloud.  It could be heading for the next targets 44700 and 39115. 57000 is a key level.  In the short term, do not turn bullish unless price breaks above 57000.



All posts and charts are for educational and illustration purposes only
Monday, March 15, 2021

JD.com (9618.HK) Bearish price action

 


JD.com is exhibiting a short-term bearish price action and is trading below its 100-MA (347) today.

Its current support is at 323, could correct to support levels of 300 and 281 in the short term from its current price of 323.

Stop loss at 358.


All posts and charts are for educational and illustration purposes only