On the daily time frame, we can see an up trending channel on the crude oil chart. There is a high possibility that this up trend will continue all the way to $90. Brace yourself for higher petrol prices guys on top of the ERP rates which is also going up here in Singapore. The last time I heard, its going to the $4 price region. haha. Well, what can we do? We are living in a country with a developed economy but not developed economy wages.
Anyway, lets get back to my take on the price of oil. In the long term, oil can go all the way to $150 beating the last high around the $140s region.(How I wish I could have an oil storage tank somewhere to keep petrol before this price rise. Hmm… Maybe we should hedge ourselves by buying oil futures. :p )
A correction in the oil price usually happens when it has just breached the round numbers, I notice. So, watch out for oil correction when it hits $91 to $92. Lets see whether the same thing happens this time around.
Ardy is a Professional Forex Trader specializing in the Forex market. He trades using both Technical and Fundamental Analysis and mentors other traders how to trade the Forex market using proprietary trading strategies which he has developed over the years. He started investing in equities in 1999 and trading Forex in 2008. He is the founder and lead currency strategist @ Forexachievers.com