Oil May Rally to $94 If Support at $87 Holds: Technical Analysis
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Crude oil, trading near the highest levels in two years, is likely to “break out” toward $94 a barrel if prices hold above $87 support, according to Chart Partners Group Ltd.
Commodities like oil, gold and copper are showing bullish short-term trends going into January, even as they “flirt” with an “opposing, corrective cycle” in the longer term, said Thomas Schroeder, managing director at Chart Partners, a Bangkok-based technical research company. The $87-a-barrel level is a pivot point and was the high for the year a few months ago, Schroeder said. Crude futures settled above $87 a barrel three times in November before rallying above $88 a barrel in December.