Crude oil is poised to breach technical resistance at its 200 week moving average and rally to $85 a barrel, according to technical analysis by Citi FX. Oil for November delivery touched a one year high of $77.97 a barrel yesterday, positioning it to breach the 200 week moving average at the close of today’s trading, said Tom Fitzpatrick, chief technical analyst at Citi FX, part of Citigroup Capital Markets in New York. The average last week was $74.98 a barrel.
“If that happens, we think a move to at least $85 could be in the cards with some interim resistance just above $80,” Fitzpatrick said. Such a move “is likely to confirm the directional bias for the rest of this year.” Oil last crossed the 200 week moving average a year ago on its way down to $32.40 in December, the lowest price since February 2004. Before that, crude spent more than five years above the average as it rallied to a record $147.27 a barrel in July 2008.....read the entire article.
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