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.
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