‘Goldie’ Declares Crude Oil Glut is Over, Unlikely
WTI Crude Oil
WTI Crude Oil (NYSEArca:USO) prices rose to new YTD highs, with WTI futures roughly 3.0% higher Monday, reaching 47.82 bbl, as news pointing for output disruptions suggest that supply and demand will come to balance sooner than expected, according to Goldman Sachs aka Goldie.
The multinational investment banking house said that the Oil market is shifting into a deficit “much earlier than expected” as demand strengthens while another Nigerian company came off line, following last week’s shout down by Exxon Mobil (NYSE:XOM).
Holding near the above mentioned high, Crude Oil is set up to extend its rally this week, with speculative interest pointing to a test of the 50.00 region.
In the daily: the Momentum indicator has bounced from its mid-line and heads higher with limited Northward strength, but the RSI indicator heads strongly higher approaching overbought levels, and the 20-Day SMA accelerated its advance below the current mark, all in line with a continued advance.
In the 4 hours: the technical picture is quite the same, with indicators heading North within Bullish territory, and the 20-Day SMA now providing minor support at 46.50.
Support marks: 47.10 46.10 45.90
Resistance marks: 47.90 48.60 49.20