Oil: Technical indicators point toward further gains – BBH

Light sweet crude oil for April delivery has risen in six of the past seven sessions and the technical indicators point to the likelihood of further gains, and the five-day moving average is poised to cross above the 20-day average, explains Marc Chandler, Global Head of Currency Strategy at BBH.

Key Quotes

“The contract closed above the 20-day average for the second consecutive session ahead of the weekend, which had not been done since the start of the month.  The weekly close above the $63.15 area seems to signal a retest of the recent highs near $66.40.  That said, the week technical studies are not nearly as constructive.  The US exported more than 2 mln barrels in the week ending February 16.  This might explain a key force behind the unexpected decline in US oil reserves.”