Non US Markets - Energy Update - December 27, 2017

publication date: Dec 27, 2017

Cerundolo Investment Research    

Commodities Update  

Volume 1, Issue 3
December 27, 2017

Download PDF Version here


Items of Interest:

  • On July 10th we started to write about the pullback to support on WTI in the $41—$44 area and that a “weekly close above $55 would set the stage for the next advance to the MFU-3 target of $67.” Since that time, crude oil has had a solid advance with minor pullbacks to trend support.  The other observation since that writing is that the energy-related stocks which typically lead the commodity, have shown more and more positive money flow into the group.  This we believe will help support a sustainable advance that will propel the underlying stocks higher in the coming months.
  • Since writing the initial report, we have found a greater breadth of buy ideas in the U.S. energy stocks. There are also a number of non– U.S. energy stocks that have excellent charts setups that one should not overlook, and a good number of these are in Japan where we find companies that have emerged from multi-year bases.
  • European energy companies have also emerged from very good base patterns and should continue their advances in months to come.
  • In Hong Kong, CNOOC is breaking above a multi-year downtrend and Korea, SK Innovation also looks favorable.
  • In Canada, Suncor is in a great spot to buy.
  • To sum up….WTI Crude Oil remains on target for its short-term target of $63 and long-term target (from the July report) of $67.
  • Brent Crude has a target price of 74.80 from here and a long-term target of 91. That target of 91 will come into play once we have achieved the initial price of 74.80.  From there we will then see where the weekly indicators are at that time and have a better indication of the longer term target.
  • Natural Gas is stuck in a trading range of $2.50 and $3.20.

Short-term price target on WTI

 

(Back to top)

Long-term price target from our July 10th call on WTI

(Back to top)

(Back to top)

Brent Oil continues to look bullish.

(Back to top)

Europe energy ideas:

(Back to top)

(Back to top)

(Back to top)

(Back to top)

Japan energy ideas:

(Back to top)

(Back to top)

(Back to top)

(Back to top)

Hong Kong energy ideas.

(Back to top)

Korea energy idea:

(Back to top)

Canadian energy ideas:

(Back to top)

(Back to top)