Lately, there is one question I get asked by readers more than any other.
And no, it’s not about gold, although I covered that two weeks ago.
It’s about my forecast for oil, specifically: “When will oil enter a new bull market?”
First, a little history lesson.
Crude oil bottomed in early 2016, in the $20-a-barrel range, after suffering a horrific bear market.
The bear market decline took oil prices down from a peak over $100-a-barrel in 2013 … a plunge of more than 76% in value!
Over the past year-and-a-half, oil has bounced around in a range of $40- to $50-a-barrel. And if we haven’t taken out the 2016 low by now, it’s increasingly likely we won’t revisit those lows, much less break them.
Crude is up nearly 15% since June. But it’s still far below its December peak above $58-a-barrel. That’s the way markets work. They can be plain frustrating much of the time, with plenty of false starts — just like we’ve seen in gold since 2012.
Remember, oil is one of the most-volatile markets on Earth. You can see plenty of sharp moves that make you question a trend. And you may not even realize when it’s entered a new bull market.
Oil is in a fresh uptrend now. But it’s not out of the woods just yet. Black gold has critical resistance to overcome from $52- to $55-a-barrel to confirm a new bull market in crude.
According to our proprietary E-Wave forecasting model, we expect a cycle low in crude around the end of August, followed by a rally to new highs in September and early October.
But then you’ll notice another decline from early October into November. Again, more of that frustrating volatility.
Here’s the good news. A powerful rally phase should kick in early in 2018. One that takes oil prices substantially higher.
When that takes place, you’ll see oil break right through resistance at $55-a-barrel, and quickly challenge $60.
And you can expect a similar powerful uptrend for energy-sector stocks as well.
Again, choppy over the next few months, both up and down. But that pullback will be an excellent buying opportunity to position for the next leg higher in crude oil.
But in the meantime, the real buying opportunity in energy markets right now is natural gas, and here’s why …
As you can see above, our E-Wave model expects a substantial upside move in natural gas prices over the next two months. And this cycle forecast is backed up by two bullish fundamental forces at work right now:
First, weather forecasters expect a more severe Atlantic hurricane season, which means greater chances for a natural gas supply disruption in the Gulf of Mexico, driving prices higher, and …
Second, hotter than normal late summer temperatures across the U.S. are boosting natural gas demand for power-generation to run all those air conditioners.
Bottom line: A substantial profit opportunity for investors in natural gas is right in front of us. Plus, a longer-term buying opportunity in oil and energy stocks is just around the corner.
P.S. Energy markets move fast and you need fast, actionable trading ideas to profit from it. To find out how my Real Wealth Report members are positioned for the windfall in black gold, click here now.