Brent crude may climb to almost $115 a barrel in the next two weeks after the most recent closes were above the previous highest levels, according to technical analysis by Futurestechs.com Ltd.
“The initial trends so far this year have been for prices to steadily rise before posing resistance at $112.40,” Liam Roberts, technical analyst at the Billericay, England-based researcher. “Now we have had consecutive closes above this level. The next upside target is $114.95, where we saw a number of highs in mid-October.”
The contract for March delivery was little changed at $113.39 a barrel on the ICE Futures Europe exchange as of 9:33 a.m. in London. It closed yesterday at $113.48, which was the highest in more than three months.
“We are backing the bulls at the moment, as you have resistance levels being passed and on top of that open interest is rising, which is a sign that long positions are increasing too,” Roberts said.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.