Weekly Newsletter from 30 – 3 November 2017
Small part of oil sections from last week letter…
ENERGY
Last week oil, heating oil and RB Gas traded higher and tested the higher side predicted target of $53.78 level. If oil closes above this level for five days then we may see oil prices moving 10 to 12% higher from the current level. At this stage, oil will trade mixed during this week; heating oil and RB Gas will follow oil.
We recommended not to short oil if it closes above $49.88 level which was proven accurate. At this stage if oil holds $53.78 level then energy traders will surely receive a yearend bonanza. If it keeps trading around $53.88 then avoid any buying.
This week looks mixed for oil. On Monday and Tuesday oil prices will trade both sides. From Thursday onwards we may see a positive trend in oil, heating oil and RB Gas. Both sides move indicating on Wednesday.
Oil will remain in a bullish pattern until it holds $49.88 and $52.65 level. Once it starts trading above $53.78 then we may see $61.55 level in oil but at this stage it looks difficult. We are not recommending any shorts in oil at this stage during this week. One can take buying around the lower sides. Aggressive selling is only recommended if oil breaks $49.88 level.
On the other hand energy stocks look negative until ERX remains below $30.00 level. Once ERX trades above $30.00 then we may see a sharp rise in energy stocks.
Natural gas’ trend looks far better than oil in the short to medium term; buying gas around $2.95 will provide nice profits in the coming time. This week on Monday and Tuesday a mixed trading pattern is indicating. On Wednesday prices will rise but on Thursday weakness will come. We are recommending buying gas on Friday as from next week a positive time cycle is starting in GAS....
Thanks & God Bless
Mahendra Sharma