Crude Poised to Reach $90 a BarrelCrude Poised to Reach $90 a Barrel, Lind-Waldock Says: Technical Analysis
Oct 22, 2010
By Barbara Powell - Oct 22, 2010
Crude oil is poised to reach $90 a barrel by the middle of December, according to technical analysis by Lind-Waldock in Chicago.
The December contract, which became the front-month contract yesterday, has been trading in an uptrend, a pattern of higher peaks and higher valleys, since touching a low of $75.10 on Sept. 23, Blake Robben, a strategist at Lind-Waldock, a division of MF Global Ltd., said in an interview.
“Since then, the market has made higher highs and higher lows,” Robben said. A line drawn from the Sept. 23 low to the Oct. 20 low of $79.90 projects to $90 by the middle of December, he said.
The initial target for the rising price is $86.52, the high on May 13, which may be reached by the middle of November, Robben said.
“If we close below $79.90, the uptrend is over and we’re back in a trading range of $75 to $85,” he said.
Crude oil for December delivery settled at $80.56 a barrel yesterday on the New York Mercantile Exchange.
To contact the reporter on this story: Barbara Powell in Dallas at Bpowell4@bloomberg.net.
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net