WTI: Cup-And-Handling It?
Neal Gilbert | Dec 03, 2014 04:13PM ET
Unless you’ve been spending your spare time on the beaches of the Caribbean or hiding under a rock, it is almost impossible not to hear about the price of oil lately. Even my 6-year old daughter felt the need to point out how cheap fuel was at $2.74/gallon as we breezed by the gas station the other day (and to think that it was $0.79/gallon when I was in high school). The reason for such affordable travel has been a combination of an improving US economy, increased drilling in the Bakken Oil Field and OPEC keeping production steady among other things.
The big question everyone is asking though is “When will it bounce back?” Well, based on an obscure technical pattern called the cup-and-handle, the bounce may be upon us. Granted, this handle is getting a little long in the tooth, but if it manages to break out of the down-sloping trend line, West Texas Intermediate crude may find a good reason to start rallying back to $70 and beyond.
Source: www.forex.com
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