Oil’s 100-Day Mean May Send ‘False Signals’: Technical Analysis
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Crude oil’s 100-day moving average above $78 a barrel, currently the first line of resistance on technical charts, may send “false signals” about the market’s ability to rally, according to Societe Generale SA.
Oil in New York breached the 200-day moving average on June 15, prompting expectations prices would sustain an advance. While a test of the 100-day mean is possible in coming days, this indicator has failed buyers previously, said Stephanie Aymes, a cross-commodity technical analyst at France’s second-largest bank by market value.