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."
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
