Brent crude crossed $66 a barrel and WTI Texas went past the $56 mark last week as oil analysts see these bullish signs as an early indicator of more to come.

“Oil has previously struggled during previous periods of risk aversion but, like its fellow commodities, is fond of a weaker dollar and is continuing to respond to favourable reports this week,” Craig Erlam, senior market analyst at brokerage OANDA, wrote in a morning market briefing. “Brent and WTI are both now seriously testing a major resistance zone, around $65 and $55, respectively, the break of which could be the catalyst for another rally.”

As such, traders looking for a momentum oil play can look to the Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (NYSEArca: GUSH). GUSH seeks daily investment results, of 300% of the daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index.

The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, exchange-traded funds (“ETFs”) that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is designed to measure the performance of a sub-industry or group of sub-industries determined based on the Global Industry Classification Standards (“GICS”). The fund is non-diversified.

The video below covers Brent crude oil prices hitting 2019 highs above $65 per barrel on Friday, spurred by U.S. sanctions against Venezuela and Iran as well as OPEC-led supply cuts.

For more market trends, visit ETF Trends.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.