CRUDE OIL HAD A GREAT MONTH

Since January 13th the black commodity gain roughly 10% within a month. It has come up from 91,60$ to 101,30$. And, steadily stays above 100$ in the last four days, it happened the last time in 2013 October. Crude oil made a fifth weekly gain in row at NYMEX. Today the floor is closed for President Day so only the future market is opened.

Why is so bullish the oil? There are several fundamental arguments by analysts. The massive cool weather, the most severe winter in US after decades and low storage inventories.

We are long on oil since last December and made more than 10% profit so far. Technically it seamed the WTI last December a good buying opportunity. There has been clear uptrend channel since October 2012. The uptrend has been intact and was just tested at last December and we bought the down side of the channel and still holding positions in oil. Plus we saw a double top pattern which confirmed the uptrend move. In our view the price could jump up to 110$ area, if the 103,50$ resistance level would be taken within a week.

The BFM Assets Team.