Crude Resistance Lines Up Near 51 Next Week
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-“Price wise, oil is locked in a volatile range and it takes a break of 54.21 to set the stage for a rally to a double bottom objective of 58.29. The top of December congestion at 59.01 reinforces the double bottom target as an important market level. Continuation lower would leave crude within the well-defined bearish channel and open up the 38.2% absolute retracements of the August 2013 high (112.21) and June 2014 high (107.64) at 41.12 and 42.86.I’ll add that the 38.2% absolute retracement of the May 2011 high (114.80) is 43.85 and the low thus far is 43.56.” There is a confluence next week that could provide resistance near 51.