The S&P GSCI Index is poised to surge 10 percent by the end of the year if oil prices breach resistance above $75 a barrel this week, according to a technical analysis from Oscar Gruss & Son in New York. The GSCI has just broken out of a four month consolidation after moving above resistance at 481, and if crude oil rallies, “this index could easily move significantly higher,” said Michael Shaoul, chief executive officer at Oscar Gruss.
The index soared as much as 2.7 percent today to 485.03, the highest level since Oct. 20, 2008. The next resistance for the GSCI is at 530 points, marking a 38.2 percent retracement of the 2008 collapse, he said. The index tumbled from a high of 893.86 on July 3, 2008 to 305.59 on Feb. 19. “This target is comfortably achievable during this quarter,” Shaoul said.....read the entire article.
