https://thegoldandoilguy.com/wp-content/uploads/2019/07/30-1.png 368 665 admin http://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.png admin2019-07-30 10:31:002019-07-30 10:31:00Energy Sets Up Two New Trades – Here They Are
Before we discuss these incredible trade setups in the Energy sector, we have to discuss the continued shifting global economy and how that relates to these setups. Nearly three weeks ago, we posted a research article suggesting Crude Oil would call to levels near $50 over the next 30+ days, then stall for about 45 days before falling further and potentially attempting new lows near $40 ppb. It is important to understand certain aspects of the global economy, economic demand and how it relates to seasonal patterns for Energy. We believe the move lower is Crude Oil is related to a supply glut that continues to plague the global markets while global economic trade, shipping, and activity continue to weaken. Too much oil supply with weakening global economic activity means Crude Oil will likely waffle lower until this dynamic changes. Please read our recent research post to know where Crude Oil is likely to head next. Also this crude oil, prediction uses our oil price DNA algorithm to show us the future price range of oil. Other energy-related symbols, like Natural Gas and ERY, are set up for a different type of price move. The reality of the situation is that once Crude Oil reaches to levels near $50 ppb, it is very likely that a support level will push Crude back higher (as we suggest in our research) which will align with a seasonal pattern for Natural Gas and early Winter demand for heating oil. September, October, and November are typically a ramp-up period for winter demand and end of year holiday travel. People tend to take advantage of the last bit of Summer to seek out vacation spots, prepare for winter and push the cold back as long as possible. Future contracts may move higher, in preparation of this seasonal trend, many months before the season actually starts. This is the reason we believe the energy sector is setting up some incredible opportunities for skilled technical traders.