As the Brent crude oil futures surpass their price range and trade high, the commodity seems ready to skyrocket beyond $100 per barrel, the head of retail derivatives at an English investment house told Bloomberg.
February-delivery Brent crude futures notched their highest levels since October 2008 on Wednesday when striking $98.85 per barrel in London. And on Thursday, the commodity was valued at $98.50 shortly after 11 a.m.
"I cannot see any reason why we will not see $100," Ward said. "We have positive moving averages with the price action above them all, and they are all pointing up. We are constantly seeing high peaks and higher troughs – in effect a decent bullish trend."
He said prices these days surpass the key nine-day, 14-day and 40-day moving averages,moving averages for nine day and the next "significant resistance" for Brent crude will be $105.
"The current supply-demand situation in Brent has put the front spread in backwardation for the first time for ages," Ward said. "The bullish picture of the physical market is backed up by a strong technical picture."
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