BNP Paribas Says $60 Crude in the Cards

Crude oil has surged more than 15 percent from its low last week, and according to one technical-minded trader, the charts are setting up for an even bigger rally.

“I think we are in the process of creating a floor,” Darren Wolfberg, head of U.S. cash equity trading at BNP Paribas, said on CNBC.com’s “Futures Now” on Thursday. “I don’t think we’re going to see new lows here.”

According to Wolfberg, crude oil has broken through some key technical levels, which could set the stage for new year-to-date highs. “We’re in the $10 range from $44 to $54 [a barrel],” he said.

Specifically, Wolfberg points to what he calls a “W” formation, also known as a double bottom, which technicians say could often be seen as a level of support on the chart. “We’re playing close attention to that $48.50 level. That opens up the bottom of the range, that $44 level,” he added.

If crude can rally and close above $52, Wolfberg said, crude could easily surge about 10 percent to 20 percent.

“Sixty dollars is going to be the next level in the cards,” said Wolfberg. Crude hasn’t been that high since the end of last year.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.