Chart Book

Chart of the day: Nymex crude oil sputters

PUBLISHED : Sunday, 03 April, 2016, 11:10pm
UPDATED : Sunday, 03 April, 2016, 11:10pm

The rally since February’s dramatic low, when the ratio between oil and gold got to the most ridiculous extreme ever, was not surprising as it started from ultra-long-term support between US$25 and US$30 per barrel on the Nymex. A little further follow-through to this rally might be possible over the next three months due to the quarterly hammer candle. But rather than the start of a new bull market, readers and investors should see this as part of a lengthy process in finding a new interim base. Rallies above US$45 to US$48 are going to be hard to sustain over the coming quarter and therefore traders should try to profit from swings between these two broad chart areas.

Nicole Elliott is a technical analyst