Crude oil attempts further recovery
James Chen April 20, 2015 8:02 PM
<p>US crude oil (daily chart shown below) has been in a relatively steep ascent for the past month since the new six-year low around 42.00 […]</p>
US crude oil (daily chart shown below) has been in a relatively steep ascent for the past month since the new six-year low around 42.00 was established in mid-March. That low dipped under the prior multi-year low of 43.60 that was hit in late January.
Having formed the two tentative bottoms in the first quarter of this year, crude oil has shown some signs of an attempt to recover from the prolonged plunge that has been in place for the past ten months.
This plunge brought oil prices down from an intermediate high of 107.65 in June of 2014 to the noted six-year low around 42.00 this March – a drop of more than 60%.
Last week, price action rose to a new 2015 high of 57.38, comfortably surpassing the previous 2015 high set in February and further bolstering its recovery attempts.
Any further rise and recovery has its next price target around the key 60.00 level. To the downside, tentative support on any pullback continues to reside around the 50.00 level, which is also in the current vicinity of the 50-day moving average.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.