West Texas Intermediate may rise toward $100 after prices settled above a key Fibonacci level for a second day, according to a technical analysis by Iitrader.com.
The May WTI contract has climbed for the past four sessions and settled above $95.55 a barrel for the past two. That’s the 61.8 percent retracement level from a March 4 low of $89.79 on a three-month Fibonacci study. The price may test $100 if it breaches $97.92, the Feb. 20 intraday high, said Bill Baruch, a senior market strategist at Iitrader.com, a Chicago commodity trading firm.
“The $95.55 level is now the support,” Baruch said. The $97.92 price “is where the market broke down in February, and if we move above the level, the market will make new highs. We are looking at $100.”
Oil for May delivery gained 24 cents to settle at a five- week high of $96.58 yesterday on the New York Mercantile Exchange. Futures touched a three-month intraday high of $99.11 on Feb. 13. Prices last traded above $100 in September, and crude last settled above the level in May.
A breach below the 50 percent Fibonacci retracement of $94.44 may set a bearish trend for oil, Baruch said. The Fibonacci sequence of numbers is used by traders to predict areas of support and resistance as markets repeat earlier movements.
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