Oil May Rise to $90, Escaping ‘Bear Trap’: Technical Analysis
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Oil is likely to rise to between $88 and $90 a barrel in the coming weeks and yesterday’s decline below a Bollinger Band support level may mislead investors into seeking an extended price drop, Cameron Hanover Inc. said.
Crude, set for the biggest weekly decline in New York since November, will rebound if futures settle above $86 a barrel, said Peter Beutel, president of the energy adviser in New Canaan, Connecticut. The market yesterday closed below that level for the first time since Nov. 30, breaching technical support on the daily chart indicated by the Bollinger Band.