Crude prices recaptured the $54 handle, and are poised to test resistance near the February highs at 54.34. This comes despite a continued rise in U.S.
Crude prices recaptured the $54 handle, and are poised to test resistance near the February highs at 54.34. This comes despite a continued rise in U.S. production that should continue given the increase in the active U.S. Rig count. A break of this level would lead to a test of the January highs near 55.22. Support on crude is seen near the 10-day moving average at 53.22.
Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. Baker-Hughes rig count data revealed a 6 rig increase on the week, bringing the total to 597 and up from 413 a year ago. The report marks five-straight weeks of increases.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.