Crude Oil Finally Clears Last Year’s High

The Commodity Specialist view - After a pullback in 2010 found support from the 38.2% retracement the ensuing recovery returned to the area of the May high, but seemed temporarily reluctant to push decisively through. This is now happening though.

• BRENT CRUDE - WEEKLY CONTINUATION CHART: On the continuation chart the May-10 high was breached sooner. With the 50% recovery level also surpassed our next focus here is on the 105.00 area, the 61.8% retracement.
• BRENT CRUDE DAILY CHART - MAR-11: Recent consolidation around the May-10 high has given way to another s/term bull move, reinforcing our bullish stance. Initially on the upside we keep in mind the 1.618 swing projection off prior 93.91/73.19 May-10 drop at 106.72. This lies a little above the 105.00 level on the Weekly chart. Ideally at this stage support from the 90.00 area will hold s/term dips in order to preserve current momentum. This ties in quite nicely with the 89.58 May-10 high from the continuation chart.

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