"April 26 (Bloomberg) -- Oil may break free from its trading range in the third quarter and rally to $70 a barrel, according to technical analysis by Shuaa Capital PSC, the United Arab Emirates’ biggest bank.
Oil in New York is in a “bottoming process,” bound in a range between $38 and $55, according to Nabil Effat, Dubai-based Shuaa’s chief technical analyst. Crude futures reached a year- to-date high of $54.66 on March 26.
“Clearing the $55-a-barrel resistance should trigger more buying with a target area of $65 to $70 a barrel,” Effat said in a telephone interview from Dubai.
A rally would target the $70, close to the oil’s 200-day moving average, currently $69.96. Analysts use moving averages to identify trends and find support and resistance levels for prices.
Prices will also be drawn toward $76.28, a 38.2 percent retracement of last year’s plunge from oil’s record at $147.27 to a low of $42.40 in December."
ROC Price at posting:
44.0¢ Sentiment: LT Buy Disclosure: Held
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