Oil May Test $106 a Barrel for the First Time in Three Weeks

 Advanced Market Timing Experts Workshop 2011, Master Market Timing with the Leading Technical Analyst

From Bloomberg Oil Price Goes Up

Oil may test $106 a barrel for the first time in three weeks if it breaks through technical resistance at its 100-day moving average, according to technical analysis from Blue Ocean Brokerage LLC.

Crude has traded in a range of $95 to $102 after settling below the 100-day average on May 11. A breach would position the July contract to rise near $106, a price that corresponds with both the 50-day moving average and the 76.4 percent retracement level on a Fibonacci study, said Carl Larry, Blue Ocean’s New York-based director of energy derivatives and research.

“We’re definitely targeting the 50-day moving average, which is around $106, as we see new money come in” at the beginning of June, Larry said. The 50-day average is at $106.17 and the 76.4 percent Fibonacci level is at $106.08.

Crude oil for July delivery gained 36 cents, or 0.4 percent, to settle at $100.59 a barrel May 27 on the New York Mercantile Exchange. U.S. financial markets were closed yesterday for the Memorial Day holiday. The contract edged up 0.5 percent last week.

If oil fails to breach the 100-day average this week, it’s likely to test support at the 50 percent Fibonacci level, or $95.79, Larry said. Below that, it will look to the 200-day moving average at $93.89, he said.

Technical analysts use historical chart patterns and tools such as moving averages to predict potential future price movements.

Read More at: http://www.bloomberg.com/news/2011-05-31/oil-may-breach-100-day-average-test-106-technical-analysis.html

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s