By Yan Petters
Crude oil has shown abnormal volatility close to the end of the year. On Thursday, crude saw a 240 pip drop, falling to as low as $89.00 a barrel. Yet on Friday, just before New Year’s Eve, crude saw an astonishing 300 pip appreciation, leading the commodity to $92.00 a barrel.
As this week kicks off, crude oil signals that the bullish trend is likely to proceed. Let’s take a look at the 4-hour chart:
• The Slow Stochastic has just completed a bullish cross.
• The MACD saw a bullish cross on Friday, and continues to point up.
• The RSI points up as well, and is about to reach the over-bought section.
All this indicates that another bullish session is about to take place. Considering that crude has just crossed the 92.00 resistance level once again, it seems that crude’s bullishness might take it to the $93.00 level later on today.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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