| Oil prices have surged by 20% since the end of January. The bounce has led some to call an end to the eight-month long rout during which the cost of a barrel of both Brent crude and West Texas Intermediate (WTI) has more than halved. Not everyone, however, is so confident. This rally has been driven by a drop in US rig count, massive cuts in upstream capital expenditure, the reading of technical charts, and investor short position-covering.
“Chartists...are strutting their stuff at the moment as their support levels are being held and upward resistance being tested,” says industry expert Malcolm Graham-Wood. “For Brent, support is seen as being at $53.99 and $52.40 while resistance is at $59.15 and after that at $69.23. Brent’s intra-day high yesterday was $59.61 and whilst we are well off that at the moment if it should close above that level then they are in Nirvana.”..............................................Full Article: Source
|