Oil Stocks Will Continue To Rise As Dollar Sinks
Oil prices continue to climb, as WTI is now nearing $66, as we are closing in our prediction for Oil to rise to $75. And with the U.S. Dollar sinking again, the case for increasing Oil prices continues to strengthen.
The chart below shows just how far Oil has come over the past two years, and how there is little to no resistance to standing in its way between now and $75.
The dollar index has broken all support around 91 and is now around 89. There is one last line of defense for the dollar index around 88, but based on what the euro and yen charts look like, it seems unlikely to stop its decline at 88.
The euro has completely broken out, trading around 1.24 to the dollar and seems to be on its way to 1.30 vs. the dollar.
While the yen hasn’t broken out, it is nearing a breakout and should it move below 108; the Yen shall strength to around 100 vs. the dollar.
Even more amazing is the pound has now recouped all of its losses to the dollar after Brexit, and it is likely to continue to strengthen vs. the dollar.
Exxon has broken out and appears ready to continue to climb towards $93.
Chevron shares are nearing all-time highs, and a rise over $135 would be a significant breakout as well.
ConocoPhillips is breaking out in a break way as well and could be headed towards the mid-70’s.
Look at this huge move, and the potential for more to come, maybe all the way to $72.
Watch our premium On-Demand video, in it, we discuss in more detail out the dollar’s decline and the material stocks which could see enormous benefits from a sinking dollar.
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Tags: #oil #dollar #euro #yen #pound #exxon #chevron #conocophillps