Oil needs to maintain this level for crude oil to deflate: technician

The crude can not climb higher if it does not exceed the key level of $ 60, explains Louise Yamada, technician.

If the stars line up – crossing the 50-day moving average of the crude above the 200-day moving average at the same time as the price exceeds $ 65 a barrel – Yamada becomes more optimistic.

"We have an exceptional goal of $ 70" if these two things happen, she said. "But our real concern here was the resistance around $ 63, $ 64. So we want to see how it's negotiating this level." We had a nice positive divergence in the daily dynamics in December, suggesting that the trough we have saw was a reversal, which we had. […] So, this can be a resting point before, and if, prices go up higher. "

And although the indicators of the daily and weekly momentum of the crude remain positive, "it is the monthly which concerns us", warned Yamada. "It's close, but it has not evolved into a positive position, if that's the case, then I think you could see it climb higher." But for now, I think it's time to take a little rest. "

WTI crude oil prices closed Friday's trading session relatively stably, up less than half of 1%. On Thursday, RBC Capital Markets had raised its forecast for 2019 regarding Brent crude international, the global benchmark, at $ 75 and its forecast of $ 80 throughout the summer.