WTI crude oil prices could jump between 20 per cent and 50 per cent, due to the staggering trend that a large march could come to property and that has only happened three times this year, crude strategist told CNBC this week.
Miller Tabak, a equity strategist, Mattley, told CNBC’s Trading Nation program: “Crude oil has seen something called the Golden Cross on its weekly chart.
The short-term moving average of a chart, called the Golden Cross, appears above the long-moving average. The design of the gold cross chart shows the potential for a great parade.
“That has happened only three times since the beginning of this century, and each of these three times has been followed by a very strong march in crude oil at 20% -50%,” Maley told CNBC.
According to the strategist, the energy sector looks good if the market continues to rally. The energy sector has outperformed the overall market since last October, and has been in decline since July, he said. If the market catches up, energy stocks could work well in the fourth quarter, the strategist added.
Despite concerns about Delta alternatives, major investment banks continue to be bullish on oil, although not all of them are as bullish as Goldman Sachs.
Golman analysts expect a delta surge in the next two months, but expect a $ 80 price target for Brent crude by the end of this year.
In a statement in mid-August, Goldman Sachs stated: “Apart from the Delta Hurricane, we expect demand recovery to continue with vaccination rates.”
By Charles Kennedy for Oilprice.com
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