InvestMacro

By ForexTime

• Brent’s 50-day SMA could soon cross above 200-day counterpart
• However, other forces may negate bullish “golden cross” signal
• Oil weighed down by risk of higher Venezuela/Iran supplies
• Oil dropped on technical pullback, deteriorating China economy
• Brent may yet return into sub-$80/bbl levels, while $88 offers strong resistance

Brent’s 50-day simple moving average (SMA) is currently teasing its 200-day counterpart.

Prices of the global oil benchmark are climbing at the time of writing as Brent tries to halt three straight days of declines.

Traders typically see a bullish signal (a sign that prices will go higher) when the 50-day SMA crosses above the 200-day SMA to form a “golden cross”.

The last time Brent formed a “golden cross” on the daily charts was back in late-September 2020.

After that previous episode, Brent went on to soar by more than 200%, going on to peak just above $130/bbl following Russia’s invasion of Ukraine.

However, there are other forces at play that may offset a bullish signal from a “golden cross”.

Here are 4 reasons why oil prices have been falling of late:

1) US-Venezuela talks

The US is discussing with Venezuela about possibly lifting sanctions on the latter’s oil exports temporarily.

Keep in mind that Venezuela boasts of the largest crude oil reserves in the world (though its refining capabilities are limited).

Should these sanctions be lifted, it risks sending out more crude oil into the world.

NOTE: Greater supply tends to translate into lower prices, all else equal.

The Biden administration is dangling this carrot so that Venezuela would hold fair elections in 2024, while lower prices at the pump would also placate the US voter base.

2) Iran’s exports surge

Iranian oil, which is sanctioned, has been making its way into China at the highest level in about a decade!

When China, as the world’s largest crude importer, is taking in such shipments, it lessens the need for China to buy oil from other producers, prompting depressed global oil prices.

3) China’s waning recovery

Much has already been made about China’s stuttering economy, as wary consumers have heaped more pressure on China’s property sector, which in turn risk financial instability.

Oil markets are concerned about the sluggish demand levels in the world’s second largest economy, and also the world’s largest crude importer, which has led to falling oil prices.

NOTE: Lower demand tends to lead to lower prices, all else equal.

4) Technical pullback

Brent bulls could do no better than the $88/bbl handle earlier this month, which makes sense given that that price region has capped Brent since last November.

That peak also saw Brent’s 14-day relative strength index (RSI) – another widely used technical indicator – breaking into “overbought” territory.

That technical event signalled that Brent was indeed ripe for a pullback, and it duly did (see chart above).

Brent looks past positive catalysts

The above factors even prompted oil markets to shrug off signs that oil inventories worldwide are around a 6-year low.

Also, the Energy Information Administration (EIA) this week reported a larger-than-expected 6.1 million barrel drawdown in US inventories to reach its lowest levels since December!

Where to next for Brent?

From a fundamental perspective, of course it boils down to the supply-demand equation.

Further declines in Brent prices may prompt Saudi Arabia and Russia to further crimp their oil shipments.

Such supply cuts may then shore up Brent price and help them stay close to the $88.00 resistance zone.

However, Brent may languish back in sub-$80/bbl levels if the Chinese economy continues to produce worrying signs, coupled with the risk of more oil supplies out of Venezuela and Iran to offset Saudi/Russia’s lowered shipments.

If further declines aren’t thwarted at the 50-day and 200-day SMAs, then the 100-day SMA may then be called for support just below the psychologically-important $80/bbl mark over the near term.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

By RoboForex Analytical Department

The commodity market has stabilised as the new week begins. The price of a barrel of Brent is hovering around 85.40 USD.

The price recovery is observed for the third consecutive day. Market expectations are tied to China: there are reasons to believe that the Chinese authorities will implement additional measures in their stimulus-driven economic policy.

Meanwhile, market players continue to exercise caution. The Federal Reserve System recently announced its readiness to continue tightening its monetary policy to combat inflation. At the same time, the economic outlook for China remains uncertain.

Technical analysis of Spot Brent Crude Oil:

On the H4 Brent chart, the price has rebounded from the support level and is now developing an ascending wave to 88.50. This is a local target. After the price reaches it, a link of declining correction to 85.75 might follow (with a test from above). Next thing, a rise to 94.50 could be expected. Technically, this scenario is confirmed by the MACD, whose signal line has left the histogram area and is aimed strictly upwards.

On the H1 Brent chart, a structure of an impulse to rise to 85.30 has formed. Today a narrow consolidation range is expected to develop below it. An escape from the range upwards might facilitate the development of a wave to 86.66, from where the trend could continue to 88.50. Technically, this scenario is confirmed by the Stochastic oscillator with the signal line under 80, ready to renew the highs.

Disclaimer

Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

By ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

By RoboForex.com

BRENT

Brent quotes are above the 200-day Moving Average on H4, indicating a prevailing uptrend. The RSI is testing the support line. In these circumstances, the quotes are expected to break the 4/8 (87.50) level and reach the resistance level at 5/8 (90.62). The scenario can be cancelled by a downward breakout of the support at 3/8 (84.38). In this case, the quotes could drop to 2/8 (81.25).

On M15, price growth might be additionally supported by a breakout of the upper line of the VoltyChannel.

S&P 500

S&P 500 quotes have broken the 200-day Moving Average on H4 and are now below it, which indicates a potential downtrend. The RSI has rebounded from the resistance line. In this situation, the price is expected to test the 2/8 (4453.1) level, break it, and fall to the support at 1/8 (4414.1). The scenario can be cancelled by a breakout of the resistance at 3/8 (4492.2). In this case, the S&P 500 index could return to 4/8 (4531.2).

On M15, the lower line of the VoltyChannel is broken, which increases the probability of a further price decline.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By RoboForex.com

Brent

Brent quotes are hovering above the 200-day Moving Average on H4, indicating a prevailing uptrend. The RSI has broken the resistance line. As a result, in this situation, the price is expected to grow further to the nearest resistance at 4/8 (87.50). The scenario can be cancelled by a downward breakout of the support at 3/8 (84.38). In this case, the Brent quotes could return to 2/8 (81.25).

On M15, the upper line of the VoltyChannel has been broken, which increases the probability of a further price rise.

S&P 500

S&P 500 quotes are above the 200-day Moving Average on H4, which indicates a prevailing uptrend. The RSI is nearing the resistance line. Currently, the price is expected to test the 4/8 (4531.2) level, rebound from it and decline to the support at 2/8 (4453.1). The scenario can be cancelled by a breakout of the resistance at 4/8 (4531.2). In this case, the S&P 500 index could continue to rise and reach 5/8 (4570.3).

On M15, after the price tests the 4/8 (4531.2) level, an additional signal for the price to fall could be a breakout of the lower boundary of the VoltyChannel.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Source: Streetwise Reports  (7/25/23)

For this green tech company looking to save space on solar power installations, the agreement is proof that its technology is commercially legitimate.

The agreement with Cattail Crossing Golf and Winter Club in Sturgeon County, Alberta, indicates the club’s intent to install a Three Sixty Solar tower to generate power for the golf course and the clubhouse.

Three Sixty’s solar towers build up instead of out to save space, rising vertically instead of covering acres of ground horizontally, leaving up to 80% to 90% more room for other economic or preservation purposes.

“They have substantial power needs and don’t want to give up their land because, obviously, that takes up space they need for the course,” Three Sixty Solar Chief Executive Officer Brian Roth told Streetwise Reports.

For Three Sixty, it’s an important step and a proof of concept for the technology, he said.

Three Sixty’s technology is a “big deal” because most solar farms are in rural areas, leading to energy leakage getting the electricity across distances and to market, Technical Analyst Clive Maund wrote.

“The biggest thing is just as we work through the commercialization process, it’s proof that it’s commercially legitimate and that people are willing to pay and move forward on projects that are not just demonstrations or R&D funded,” Roth said.

Three Sixty’s technology is a “big deal” because most solar farms are in rural areas, leading to energy leakage getting the electricity across distances and to market, Technical Analyst Clive Maund wrote.

In addition, the vast areas of land consumed by these solar arrays generally mean that it can’t be used for anything else, so there is a serious opportunity cost loss as well, he said.

The company’s vertical tower arrays can be built virtually anywhere, including in cities, and they take up little space.

“Three Sixty Solar’s towers will eventually render all these vast acreages of solar panels all over the place obsolete,” Maund wrote. “This being so, its stock has the potential to appreciate by many thousands of percent.”

‘Ideal Solution’ Does Not Sacrifice Land

According to the letter of intent, the parties plan to begin a feasibility study on the site as quickly as possible with the goal of reaching a binding purchase order by Aug. 31.

According to a Stratistics MRC report, the global market for solar energy accounted for US$76 billion in 2020 and is forecasted to reach US$296 billion by 2028, growing at a compound annual growth rate (CAGR) of 18.5%.

Cattail Crossing owner Mark Beck said the club had been looking for ways to add renewable energy to the operation, but he couldn’t find anything suitable for the land.

“The solar towers offered by Three Sixty are such a unique approach that we can easily make it fit and generate power for our irrigation systems, cart charging, and more,” Beck said. “We are looking forward to working with Three Sixty and becoming an advocate for the solar tower solution to our friends in the golf community.”

Three Sixty’s solar technology is an “ideal solution” for the club “to provide power for operations without sacrificing the land they need for the course and clubhouse,” Roth said.

The Catalyst: Targeting Net Zero Emissions

Driving the growth is an increase in pollution, a surge in rooftop applications, and increased adoption in agriculture, the report said.

Solar power uses photovoltaic cells and other technologies to capture the sun’s radiant energy, which is efficient and renewable and mitigates environmental risks coming from options creating greenhouse gas emissions.

According to the Solar Energy Industries Association, the cost to install the equipment has dropped by 50% over the last decade, leading to the deployment of thousands of new systems in new markets.

Governments are giving big incentives, as well. Canada is targeting net zero emissions by 2050 and has launched a CA$964 million program, Three Sixty Solar said. The United States Inflation Reduction Act commits US$370 billion to fund green energy, and the European Union has an energy target of at least 32% from solar by 2030. The European Green New Deal envisions a climate-neutral continent by 2050.

Countries have been “throwing record amounts of money at these types of technologies and trying to green our electricity grid,” Roth said. “There’s just a huge opportunity to clean up our electricity production while . . .  being very cost competitive with the older technologies.”

According to a Stratistics MRC report, the global market for solar energy accounted for US$76 billion in 2020 and is forecasted to reach US$296 billion by 2028, growing at a compound annual growth rate (CAGR) of 18.5%.

Demonstration Tower Declared a Success

There are three models of towers, which soar from 40 feet to 120 feet tall and produce as much as 250 kilowatts per tower, the company said. They are manufactured in Canada and the U.S., approved by a U.S.-licensed engineer, and support many solar panel brands.

A demonstration tower in Kelowna, British Columbia that was in operation for 16 months was declared a success after it survived a major windstorm with gusts as high as 84 mph, intense rain and hail, and a snowstorm with no structural or panel damage.

The vertical positioning of the panels on the tower also prevented snow from covering the panels, which often inhibits power production in flatter, ground-mounted installations, the company said.

The Cattail Crossing tower will be proof that the solar towers are commercially viable, Roth said.

“And it will be an opportunity for us to go through the delivery process and continue to refine that,” he said.

The tower’s design enables it to be built with different materials to survive threats in different environments, such as surviving earthquakes in California or surviving hurricanes in Florida.

Power production and add-ons like telecommunications arrays and EV charging stations are opportunities to create more recurring revenue from the towers, Roth said.

Three Sixty Solar has applied for patents with the World Patent Office and others in North America, the European Union, and Africa.

Ownership and Share Structure

According to the company, about 21% of Three Sixty Solar is held by management and insiders. The CEO Roth owns 3.43%, founder and Director Peter Sherba owns about 30%, and Director Scott McLeod owns about 0.21%, Reuters said.

About 28% is held by strategic investors, and the rest, about 51%, is retail.

Three Sixty Solar’s market cap is CA$20.23 million, with about 43.5 million shares outstanding. It trades in a 52-week range of CA$1.29 and CA$0.51.

Important Disclosures:

1. Three Sixty Solar Ltd. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Three Sixty Solar Ltd.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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By RoboForex Analytical Department

As the new week in July kicks off, the commodities market is in high spirits. The price of Brent crude oil has surged to 81.00 USD per barrel. The oil sector is responding to rising global tensions, which may have adverse effects on the supply of energy resources. However, demand expectations are stable, and are driving prices upward.

There are growing concerns about the potential displacement of a portion of biofuels by oil and its derivatives, particularly amidst complications with the extension of the “grain deal.” This further supports the upward trend in commodity prices.

According to Baker Hughes data, drilling activity in the US has decreased. The number of oil rigs fell by 7 units to 530, and the number of gas rigs decreased by 2 units to 131.

Technical Analysis of the Brent oil price chart:

On the H4 chart, Brent is currently developing a third wave of growth. Having reached 81.40 USD, a consolidation range is expected to form just below this level. A breakout above this range would likely lead to the continuation of the upward wave, targeting 81.81 USD. Surpassing this level could open the potential for further growth towards 84.00 USD, with the possibility of continuing the upward trend to 85.00 USD. Technically, the MACD indicator confirms this scenario; with its signal line above the zero mark, it is showing a clear upward direction, indicating potential new highs.

On the H1 chart, Brent completed an upward wave to 81.04 USD, followed by a correction to 80.30 USD. After the correction, an upward wave is anticipated to begin targeting 81.80 USD. This target is local. Technically, the Stochastic oscillator also supports this outlook, with its signal line above the 50 mark, indicating a readiness to continue rising towards the 80 mark.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

By RoboForex Analytical Department

Crude oil prices have paused in their rally. Brent quotes on Monday dropped to 79.20 USD per barrel.

One of the reasons for this local decline might be the market decision to lock in a part of the profit after the steady growth earlier. This version is also supported by the fact that today is the first work day after the weekend.

At the same time, the commodity market sentiment improved noticeably over the last week. Large investment houses still expect a shortage in crude oil supply in the second half of this year, which looks like a favourable factor, keeping in mind the current demand parameters.

The buyers are equally supported by the fundamental background. The geopolitical situation in Libya is unstable, which might lead to problems with the supply of energy carriers.

Technical analysis of Brent:

On the H4 Brent chart, the structure of the third wave of growth is developing. At a certain point, the quotes rose to 78.00. A consolidation range formed around this level, the price broke it upwards and extended to 81.45. Today the market is correcting this growth. A technical return to 78.00 is expected with a test of this level from above. Next, a rise to 84.00 is to follow. This is a local target. After the quotes reach this level, a new correction to 78.00 could develop, followed by an increase to 85.00. This is the first target. Technically, this scenario is confirmed by the MACD: its signal line is at the highs, moving out of the histogram area, which is a signal in favour of a decline to zero.

On the H1 Brent chart, a corrective wave to 78.00 is developing. After it is over, a wave of growth to 84.00 is expected to start. This is a local target. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is under 20, ready to go on growing to 50. And if this level also breaks, the potential for a rise to 80 could open.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.