February seasonals: Crude already off to a great start

Author: Adam Button | Category: Forex Orders

Oil starts February strong

Oil starts February strongThe worst time of the year is over for oil.

WTI crude has one of the strongest seasonal patterns of anything. There's a period of weakness late in the year that turns into strength in February.

The buying came early this year on account of the sharp drop to $42 in December but oil is still a long way from from where it was in October ($76.90).

The good news is that the seasonal tailwind stretches from Feb through April in a fairly consistent pattern.

Technically, WTI is brushing against the important 38.2% retracement of the Oct-Dec drop. If it can get through there isn't much in the way until the 50% level and the 100-day moving average, both near $60.

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