Home Investing News Crude oil could break out of recent range – BofA

Crude oil could break out of recent range – BofA


Crude oil could break out of recent range – BofA By Investing.com

Breaking News


AuthorPeter NurseCommodities

Published Mar 01, 2024 08:53AM ET

© Reuters

Investing.com – Crude oil prices have risen Friday, but remain trapped in a tight trading range as price volatility has fallen to pre-Covid lows. Technical analysis suggests an upside breakout is a possibility, according to Bank of America Securities.

Goldman Sachs, in a recent note, said it expects the $70-$90 a barrel range to continue for the foreseeable future, citing a modest geopolitical risk premium, the OPEC put limiting downside risk, and robust non-OPEC supply growth keeping pace with solid global demand growth. 

However, BofA Securities noted that the commodity is approaching three-month highs and a range breakout is a possibility.

An ascending triangle bottom, rising simple moving averages, bullish weekly MACD [moving average convergence divergence] cross and year-to-date strength favor upside into the mid-$90s in the second quarter, BofA said, in a technical analysis note dated Feb. 29.

The bank’s analysts noted that the currency is trading in an ascending triangle pattern on the daily chart, with bulls becoming more aggressive by buying at higher lows while bears fade the same resistance level. 

“An upside breakout through resistance at $84.80-85.00 will confirm a bottom pattern and uptrend target of $91.06, $93.80, maybe $95.00 by end Q2. Must hold support line in March is $79.50-80.00. If this breaks, oil can go back to the bottom of the range at $75-73,” BofA said.

The weekly chart shows a wider range, of about $73-$96, while the monthly chart shows the 50m and 200m simple moving averages are rising and supporting the price. 

“Speculatively, a daily chart breakout higher and uptrend will mean the resistant trend line in this monthly chart breaks and a bullish monthly MACD cross follows. This would increase upside risk for an oil rally to $100-110/brl this year,” BofA Securities said.

Crude oil could break out of recent range – BofA

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News