June 16 (Bloomberg) -- Crude oil is poised to break $79 and rise to at least $93 a barrel by late August, according to technical analysis by fund manager Daniel Bruno, reaffirming a prediction he first made in December.
“Crude held above $70 a barrel support yesterday, which is a good sign,” said Bruno, the head of CEO Capital Management in New York and a chartered market technician. “If crude maintains $70, there could be a breakout above $79 by the end of June.”
Bruno on Dec. 23 called for crude to rebound from below $40 a barrel up to $93. He said yesterday in a telephone interview that crude was “five-sixths of the way there” on a percentage basis and saw no change to his original target price.
Oil is in a formation known as an ascending triangle, Bruno said, trading between a horizontal line of resistance at $78.96 a barrel and a rising support line. Resistance typically fails in such a pattern, allowing prices to move higher.
Even if the uptrend support is broken, the market is still bullish, Bruno said. “Crude has a lot of room to fall back” to a major support line near $60, “and still reach $93 and beyond.” Prices may stagnate between $57 and $72 for several weeks before rising support buoys the commodity by mid-July, he said.
“If the market trades sideways through the summer, the breakout over $79 will be stronger when it happens and crude will go higher quickly to $93 and $99,” Bruno said.
Crude oil for July delivery fell $1.42, or 2 percent, to settle at $70.62 a barrel yesterday on the New York Mercantile Exchange. Oil has risen 58 percent this year.
To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net
Tidak ada komentar:
Posting Komentar