Openheimer Analyst Says Oil to Rise due to Seasonal Factors

After a torrid run from its bottom, crude oil has settled into the tightest range we’ve seen in a year. But according to one highly regarded technician, the commodity is heading into a key inflection point.

“If you look back to 1984, you see that [the summer months] are some of the best times of the year to be invested in oil,” technical analyst Ari Wald said Tuesday on CNBC’s “Futures Now.”

Wald noted that traditionally, the time between July and September tend to be the three best-performing consecutive months for oil in the past 30 years. By his chart work, oil has rallied an average of 1.5 percent in the month of July, 3 percent in August and 2 percent in September.

And while he does see the potential for oil to trade as high as $67 a barrel in the near term, he noted some troubling signs on the chart that tells him the primary trend for oil remains lower. “We have a falling 200-day moving average which indicates that the trend is still down,” said Wald, head of technical analysis at Oppenheimer. “There’s also a very important retracement level for oil going back to last year. And I think that’s going to curb the upside.”

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.