Oil is picking up again - buying opportunity for oil companies

Fundamental factors

A correction in oil prices amidst seasonal price increases is a common phenomenon in the oil markets. A correction in oil prices amidst seasonal price increases is a common phenomenon in the oil markets and can be due to the following reasons, among others:

• Excess supply

• Profit taking

• Technical factors

• Global economic situation

Seasonality

What we have recently seen in Brent Crude Oil is precisely in line with these factors. In this context, seasonality also comes into play. It is expected that oil prices will continue to rise over the next two to three weeks.

Technical outlook for oil prices

The price of oil has been falling in recent weeks. But now there is considerable buying interest again. Meanwhile, the important resistance of USD 84 has been broken upwards. The bullish market participants are now in control. While USD 88.38 serves as the first interim target, after short-term consolidation at this level, the price range between USD 91.96 and USD 94.72 could also play a major role.

Sector analysis

This knowledge can certainly be used to take advantage of trading opportunities. I compare the strengths of German and European oil companies. Shell (yellow) in particular stands out clearly.

I have just opened a long position and used the knowledge from all areas to be able to close a potentially profitable trading position. In trading, it is all about combining different areas in order to get through the market profitably.

In addition to the blog that is actively maintained here, my information portal Investment.Traders contains other exciting articles, detailed stock analyses, presentations of various investment opportunities and a weekly update in video form. This is my contribution to financial education in Germany.