Has Oil Bottomed?
| Dec 24, 2013 12:09AM ET
The price of oil is always something to watch, as not only is it an interesting instrument for technical traders, but it also offers insight into macroeconomics and geopolitics, given its importance in energy and thus production.
Technically, I think there are some signs that oil has bottomed. We have a pattern of lower highs in place -- see the blue rectangles in the daily chart below -- and has closed above the 200 EMA for the first time since October 18.
Personally, I would like to see bulls defend the 200 EMA to preserve the bullish case. If that occurs, I think the market could be set to return to $110 -- a major resistance level.
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