Crude oil continues advance and recovery
James Chen May 13, 2015 7:54 PM
<p>US crude oil (daily chart shown below) has continued to rise in a partial recovery from multi-year lows. This recovery has been in place for […]</p>
US crude oil (daily chart shown below) has continued to rise in a partial recovery from multi-year lows. This recovery has been in place for almost two months, since the new six-year low around 42.00 was established in mid-March.
The plunge from last year 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%.
Within the past two months of steady recovery, crude oil has turned back around and advanced by over 45% to its current position above 60.00. Simultaneously, it has reached all the way back up to touch its 200-day moving average.
Currently, short-term momentum continues to push to the upside as oil moves higher in a stair-step fashion, following a well-defined trend line from the 42.00-area low.
Any further rise and recovery has its next price target around the key 65.00 level. To the downside, tentative support on any major pullback continues to reside around the 55.00 level.
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