Oil is Rising and Australian Sectors Reviewed
By Dale Gillham | Published 14 May 2018
Oil is once again black gold given that it is rising. But is this an opportunity to profit or have you missed the boat?
Recent excitement in the market has been around a surge in oil, which achieved well over US$70 a barrel this week. While you may want to understand the reason for the rise, knowing this won’t make you money and can actually mislead you into buying at the wrong time.
For example, the International Energy Agency (IEA) lifted its forecast for oil demand early last year but did it head higher as many expected? No, in fact oil was already rising strongly prior to the announcement. Oil had already peaked at around US$55.24 and fell heavily afterwards.
Another example, in March and May 2017, a rise in oil was described as a ‘big rally’, however, the chart indicated otherwise, as a rally hadn’t been confirmed. These rises were actually a sucker’s rally, which lasted for a few weeks before oil continued the decline to US$42.
So what have we learned?
It’s more important to understand the price history and where it’s headed. And this principle doesn’t just apply to oil, it works for any stock or market.
Remember, this is about the transfer of wealth from those without knowledge to those with the knowledge. So ask yourself honestly, which group am I in and where would I like to be?
While a further rise is likely for oil, the chart indicates that it will pull back soon before the next rise.
So, there’ll be new opportunities to profit in 2018 when the time is right.
So what do we expect in the market? Watch the video to find out.
Back to Market Report Videos