Are Oil Bulls Back in Business ??

#Brent Crude hit a more than three-year high on Thursday, breaking through the psychologically important $70 a barrel level for the first time since December 2014

Oil prices have been supported by stronger-than-expected demand fueled by the US recovery, worldwide economic growth on one side,  supply cuts by OPEC and Russia on the other and a series of global events that have stroked geopolitical tension.

There are a number of factors that could push oil prices higher, including supply disruptions from Iran, which faces the threat of renewed U.S. sanctions, and Venezuela, where economic crisis may hamper its ability to pump oil.

Brent  surpassed the technical target of $67 and trading at the resistance zone of around $70. A  small correction to $64 may be around the corner.

Brent Crude Daily

 A close above $70 changes the long term parameters to bullish with targets of $90-92,  backed by strong momentum as also the target for inverse head and shoulder pattern.

Brent Crude Monthly

There is strong momentum reversal with yearly trend momentum threatening to cross above zero, oil bulls may soon  be back in business. 

Brent Crude Yearly

Brent Resumes the Up Trend ??

Brent found support at  $42 levels and has reversed to test $47 . In spite of heavy short built up, the reversal may have come as a surprise as traders scramble to cover their shorts, in the process propel the prices higher.  On the daily charts,  Brent may find resistance at $47-$47.50 levels and may consolidate between $45 to $47 levels before the next move.

On the weekly charts, with the momentum picking up, a crossover of the trigger (yellow dotted) line above zero may indicate resumption of the uptrend after a brief correction from $52 to $42, a 38.2% retracement, common  during  an up move.

With the long term trend gradually picking up,  higher targets nearing $65 cannot be ruled out in the next few months. 

We had earlier indicate the possibility of Brent correcting to $43 levels and resuming the uptrend . See post : 

 Can Crude Move Higher, Post Correction ??