Tuesday, June 18, 2013

Oil set to test $100 as summer driving season gets underway: chart watchers

Oil set to test $100 as summer driving season gets underway: chart watchers
17 June 2013
, by William L. Watts (marketwatch - Blogs)


While the start of summer driving season is providing its typical fundamental fodder for rising oil prices, the monthly futures charts are repeating a pattern that points to a test of the $100-a-barrel-level and above for crude oil futures, say technical analysts at RBC Capital Markets.

Chart watchers Javed Mirza and Ray Hanson note that crude has been stuck in a $15 price range since last summer, [b]narrowing to a tighter band between $90 and $95 a barrel since April[/b], forming what chartists call a symmetrical triangle pattern.

Such narrowing patterns often end with strong moves, they note, adding that they see a bias to the upside.

West Texas Intermediate oil futures on Friday ended at their highest level since late January, according to FactSet, and traded up 47 cents in recent action at $98.32 a barrel.

The RBC chartists see more room to the upside:

We expect WTI Oil to move higher over the coming quarter and to challenge resistance near $100 with next resistance near $114.

Support is near $85 which, if broken, would negate our positive outlook.


Brent crude $101.40 and U.S. crude $93.14 – 31 May 2013
Brent crude $102.21 and U.S. crude $93.33 – 03 June 2013
Brent crude $102.58 and U.S. crude $94.96 – 11 June 2013
Brent crude $104.79 and U.S. crude $96.60 – 13 June 2013
Brent crude $106.20 and U.S. crude $97.71 – 14 June 2013
Brent crude $105.84 and U.S. crude $97.89 - 16 June 2013
Brent crude $106.06 and U.S. crude $98.02 a barrel now
http://www.reuters.com/finance/commodity?symbol=GB@IB.1

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