Oil: Technical indicators suggest near-term scope for advance - BBH

Sandeep Kanihama FXStreet Contributor

The May light sweet oil futures contract successfully tested support near $60 in the first part of last week before turning higher, points out Marc Chandler, Global Head of Currency Strategy at BBH.

Key Quotes

“The nearly 1.9% gain ahead of the weekend, helped perhaps by news of much stronger than expected US manufacturing output (1.2% vs. median estimates of 0.6%) ensured the second consecutive weekly advance and the fourth in the past five weeks. The weekly close above $62 and the technical indicators suggest near-term scope for another dollar or so advance. The highs from late February are found near $64, and this is the main technical obstacle for a run at the highs near $66 seen at the end of January.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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