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26 Apr 2013
Commodities Brief: Oil higher for 4th day in a row, closes above $93
FXstreet.com (Barcelona) - Oil traded higher for a 4th day in a row, closing up 1.79% at 93.22. At one point oil had traded as high as 93.87 (the 200dma), but was unable to break through and leaked slightly lower to end the day. The “risk on” theme across global markets helped lead commodities higher across the board, with gold, silver, and copper also finishing higher on the day.
According to Chris Caprie of 2nd Skies Forex, “Crude Oil has been on a tear lately, up over $6.50 in the last 6 days of trading with the last two being quite bullish. Checking in on the 4hr charts, the commodity has formed a small inside bar setup. Generally in such strong with trend moves, small inside bars with small rejections in the A Bar (bar prior to inside bar) suggests likely trend continuation.Should price action break above the A bars high, expect a test of $94.50 and 95.75. Intra-day price action support comes in at $92.54 and $91.95 so look for either a pullback or breakout to get with the current uptrend momentum.”
From a longer term technical perspective, the weekly “pennant” pattern which completed last week on a close below 89.80 appears to have failed and now looks like “bear trap.” We won’t know for sure until the US session closes tomorrow, but keep an eye on the 92 level as that will be the determining factor. Often times when a pattern of this length fails (started in June 2012), the corrections can be quite substantial and last for a number of days
According to Chris Caprie of 2nd Skies Forex, “Crude Oil has been on a tear lately, up over $6.50 in the last 6 days of trading with the last two being quite bullish. Checking in on the 4hr charts, the commodity has formed a small inside bar setup. Generally in such strong with trend moves, small inside bars with small rejections in the A Bar (bar prior to inside bar) suggests likely trend continuation.Should price action break above the A bars high, expect a test of $94.50 and 95.75. Intra-day price action support comes in at $92.54 and $91.95 so look for either a pullback or breakout to get with the current uptrend momentum.”
From a longer term technical perspective, the weekly “pennant” pattern which completed last week on a close below 89.80 appears to have failed and now looks like “bear trap.” We won’t know for sure until the US session closes tomorrow, but keep an eye on the 92 level as that will be the determining factor. Often times when a pattern of this length fails (started in June 2012), the corrections can be quite substantial and last for a number of days