Technical Analysis: New crude oil target $115
As shown on Weekly chart on the right side of the diagram, oil was trending upward the entire month of February, surging to an all time high of $103.05 - hitting the upper trend line from May 2006 - on the last day of the month before dropping to close the week at $101.84. The week ended with oil slightly above the upper Bollinger Band and comfortably above all the weekly moving averages. Resistance is at $103.05 and support is at $100.09 which was the high when oil first broke the $100 benchmark and also is the mid point of last week’s green candlestick. The next support is at $97.75 which is last week’s low and the mid point of the previous week.Since crude passed $100.09, it appears to have set up for a double bottom (12/06/2007 and 1/22/2008). If oil is to complete this pattern, it will reach approximately $115 probably riding the upper Bollinger band up over the next month or two. But first, it must break Friday’s resistance at $103.05.
From a candlestick, the last four weeks are three advancing soldiers plus one which presages more strength.
As shown in the Daily chart on the left, oil has been riding just below the Upper Bollinger for four weeks. It is now below the Upper Bollinger but right above the 5 day moving average. Resistance is $103.05. Support is at $101.25. Next support is at $100.09.
