Light Crude Oil (WTI Oil) Technical Analysis:
12 August 2016, Friday, 1.05am Singapore Time
Attached above is the technicals for light crude oil. Inverse shoulder-head-shoulder is still being formed. Neckline at $50 region will be expected to break up in 2H-2016 and 2017 for a rally.
Petrocurrencies such as Russian Ruble, Canadian Dollar, Middle-eastern currencies will strengthen in 2H-2016 and 2017. Emerging market currencies will strengthen in this period too.
Commodities and commodity stocks worldwide will all rebound together.
Crude oil related stocks will have a powerful rebound in 2H-2016 and 2017.
When crude oil does well, stock markets worldwide will do well and rally in 2H-2016 and 2017.
Side Note for your further learning of international financial markets:
Exchange rate of Canadian dollars for Japanese yen (99% of Japan's oil is imported) is 85% correlated with crude oil prices
Additional Side Note:
Note in addition that when oil is bullish in the forward looking, one cannot reasonably expect oil related stocks to be sold off anymore. Furthermore, why then would the local banks be considered of risk in the exposure to the oil and gas sector companies in 2H-2016 and 2017? Markets will just rally them to the sky and talk later because risks are removed in the forward looking market. Any one who shorts on gloomy news will end up being the biggest fools.
Target of Light Crude Oil:
$70.00 to $72.50