Crude Oil May Test $83 a Barrel, Auerbach Grayson Says: Technical Analysis

Crude oil will test $83 a barrel if it breaks through the 200-day moving average, according to a technical analysis by Auerbach Grayson, a brokerage in New York.

Futures may first advance to the $75-to-$76 area that was tested last week, according to Richard Ross, an analyst at Auerbach Grayson. Oil would then be set to reach $76.68, which corresponds with 200-day moving average. The $83 level is near peaks the oil market reached in December and March.

“When the dust settles, the bullish longer-term view will come into view,” Ross said in a telephone interview. “Summer is coming, and with it the peak travel season.”

Oil has tumbled as much as 26 percent on an intraday basis after reaching a 19-month high of $87.15 on May 3.

“Oil must now take baby steps before it can run with the bulls,” Ross said.

Falling below $68 would invalidate the trend and prices would head for $64.24, the intraday low on May 20, Ross said.

Crude oil for July delivery rose 28 cents, or 0.4 percent, to settle at $72.86 a barrel yesterday on the New York Mercantile Exchange.

To contact the reporters on this story: Mark Shenk in New York at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.