fxstreet.com 16 Feb, 2021 07:15 am

Texas energy crisis deepens, but oil gives toppish signs

Texas energy crisis deepens, but oil gives toppish signs
The rally in stock markets continue with bubble warnings popping up everywhere for all-size and all-industry stocks. The disconnect between price-to-e

But they throw a foundation to send asset prices quickly to the bottom once the dive begins: as the fear of a bubble burst is building stronger, the slightest sign of correction would get the bulls rushing to the exit and wreak havoc across the risk assets.We could see a deeper downside correction toward the $1800 per oz, but the rising fears of a potential equity bubble burst should keep the downside limited.Asia traded in the green despite news of a new lockdown in New Zealand’s Auckland.A downside correction could easily kick in and pull prices below the $55 per barrel, but should not damage the medium-term positive trend in oil prices.

But because the Texas boost in energy demand, and up to a million-barrel-drop in daily supply are temporary, levels above $60 look attractive to top-sellers.The EURUSD tests the 50-day moving average resistance to the upside, as Cable is about to hit the 1.

Read full story at fxstreet.com