Key Points.

• Covid-19 vaccine hopes driving the energy market
• EIA data indicated a drawdown in stocks
• Bullish breakout

The latest information from the vaccine frontier indicates that the Pfizer-BioNTech coronavirus vaccine is effective and safe. The U.S. Food and Drug Administration (FDA) cited that it will give the greenlight to country’s first Covid-19 inoculation in the next few days. On the same note, Moderna another U.S. biotech has also submitted its application to the relevant authorities. The appearance of an effective vaccine is good news for the air travel sector. This is one of the largest consumer of crude oil via the demand for jet fuel which had dropped to all-time lows because of the travel restrictions.

EIA crude oil stocks change indicated a drawdown in stocks from the previous week reading of 15.189M. This week is data indicated a drawdown of -3.135M. This gave the already rising crude prices additional strength to climb higher towards $50 per barrel.

Oil; 4 Hour Chart

After breaking out of an ascending pennant bulls are now targeting the $50 price line. A bearish move will likely delay the rally because the Relative Strength Index is now in the overbought region. A slight retracement cannot be ruled, a move meant to re-test the ascending support line. The prices are already 50 cents above the nine month high at $48.00 per barrel and bulls aren’t retreating as of yet.

Trends

Moving Average	Simple	Exponential
60	46.50 BUY	46.53 BUY
100	45.95 BUY	45.69 BUY
200	43.18 BUY	44.02 BUY

Pivot Points (Hourly)

Name	S3	S2	S1	Pivot	R1	R2	R3
US-Oil	48.20	48.26	48.31	48.37	48.42	48.48	48.53
Brent-Oil	51.46	51.51	51.57	51.62	51.68	51.73	51.79
Nat-Gas	2.690	2.699	2.705	2.714	2.720	2.729	2.735

Pivot Points (Daily)

Name	S3	S2	S1	Pivot	R1	R2	R3
US-Oil	46.57	46.87	47.34	47.64	48.11	48.41	48.88
Brent-Oil	49.68	50.01	50.54	50.87	51.40	51.73	52.26
Nat-Gas	2.558	2.588	2.632	2.662	2.706	2.736	2.780