Crude Oil has had something of a nightmare start to the New Year in the wake of the failure to pierce above $100 a barrel last month. So far, this may just be a little seasonal wrong footing for traders, helped along by the run up to the latest U.S. inventory numbers and Libya’s supply coming back on tap. But what do the technical’s suggest?
This week sees a continuation of the December bull trap reversal from above the 200 day moving average at $99.03 and the key $100 a barrel level.
Risk of a head & shoulders pattern forming, not confirmed however unless November support under $92 is broken.
Expectation for sideways consolidation ahead of break higher in similar fashion to that seen in June / July which eventually led to $110.
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