Eye On Energy - Market Analysis for Apr 3rd, 2024

Crude Oil is higher again this AM, hitting 86.10 earlier this AM, which we see on my attached Daily Chart is bumping up against a two-year resistance line that cuts across the price axis in the vicinity of 86.00/05, which if hurdled and sustained, will point May Crude Oil higher. How much higher? My attached Weekly Chart of nearby Crude Oil exhibits a setup that projects toward a run at challenging the September 2023 rally high at 95.03, where the pattern carved out since July 2022 will resemble a Double Bottom basing period. If Crude manages to take out 95.00, the Double Bottom will imply upside potential in the vicinity of 110-115. Last in May Crude as we speak is 86.02...

On the energy equity side of the ledger, XLE continues to grind higher to a new 14 year high at 96.95. As long as any forthcoming weakness is contained above 94.60 from a nearer-term perspective, the dominant uptrend will remain intact, and XLE will continue to point to 98-102 next... Last is 96.82...