Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

GBP/JPY – Potential for Further Gains

News

Has gold peaked?

News

European stocks close at record high

News

Gold prices ease after hitting record high

News

Week Ahead Preview: 17th of February

News

Europe stocks hit record high on strong earnings

Trends & Analysis
News

GBP/JPY – Potential for Further Gains

News

Has gold peaked?

News

European stocks close at record high

News

Gold prices ease after hitting record high

News

Week Ahead Preview: 17th of February

News

Europe stocks hit record high on strong earnings

Asset Watch

Are the oil bulls back?

Wednesday, January 15, 2025

 

After months of disappointment for the energy bulls, the script has seemingly flipped in recent days. With Big Tech under pressure and crude oil basking in the glory, resilient economic data has created a bid for the ‘revenge of the real economy’ assets.

But, can crude continue its climb, or is this just another short squeeze?

Supply constraints

With geopolitics adding further fuel to crude’s rally, Reuters reported on Jan. 12 that fresh U.S. sanctions on Russia could result in Chinese and Indian refiners sourcing more oil from the Middle East, Africa, and the Americas.

An Indian oil refining official stated, “Already, prices are rising for Middle Eastern grades. There is no option and we have to go for Middle Eastern oil. Perhaps we may have to go for U.S. oil as well.”

Consequently, with Russian curbs poised to decrease supply, higher prices may continue as the drama unfolds.

Psychological breakout

With crude stuck in a range of roughly $67 to $74, traders were quick to exit their positions when the price reached the upper bound. However, after smashing through the breakout level last week, $74 may become the new floor en route to $80+.

Trend-following indicators

Because crude is highly volatile, you should pay close attention to the 20 and 50-hour moving averages to gauge the strength of the uptrend. If you analyse the blue and yellow lines, you can see that the pair often act as key support levels when higher highs occur.

As a result, the outlook is bullish as long as crude trades above both metrics.

Managing risk

To ride the momentum and limit drawdowns, placing a stop-loss order slightly below the 20-hour MA could be wise. Keep in mind that both MAs will shift considerably as the days pass because the data is from an hourly chart.

As such, the sooner the 50-hour MA catches up to the 20-hour MA, the more allies crude should have for continued strength.


Site by Pink Green
© ADSS 2025


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.