Thursday, 7 May 2015

Is Oil Back In A Bull Market?


Do you remember the oil crisis? How could you not, it was just a few months ago that the value of oil fell like a ton of bricks! As a matter of fact, we're still seeing incredibly low oil prices. However, with the gains we've seen recently, investors are starting to ask…”Is oil back in the bull market?” From a technical standpoint, this is a very easy question to answer. However, from a fundamental standpoint, things look a bit different. With that said, the answer to the question all depends on how, and most importantly, when you're trading.
Technically, Oil Is Officially A Bull Again
If you follow my writing, you know that I'm a fan of both technical and fundamental analysis; and use them both quite often. With that said, in the short run, I always gravitate toward technical analysis. The bottom line is that when making short term predictions, the charts don't lie! With that said, if you pull out your candlestick chart and open it up to show you the last 3 months, the trend is clear. It's a strong bull headed for the top; and in the short run of things, it is most likely going to continue climbing.
Fundamentally, The Growth Is Flawed
Fundamentally on the other hand, an entirely different story starts to emerge. In the fundamental world, charts don't matter. Instead, we look at contributing factors that will play a role in future growth of the asset. In this particular case, that's where things get a bit shaky. Here are a few things that are important to consider with regard to the price of oil from a fundamental standpoint…

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