Oil to see new highs at $70 per barrel long term

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Here is a weekly chart work of USOIL which rejected from 66.00/65.00 region. For the past 3months, Oil price rallied from $45 per barrel and peaked at $65 per barrel. We could possibly see Oil price drop into $55 per barrel creating new lows before we see price breaking above $65 for new highs. Fundamentals and technicals play a key role in the oil market, when technical analysis is properly carried out traders can determine the Oil trend long term and short term. Fundamental factors like news also play a key role in the oil market in a sense that if a positive or negative news is been released concerning the commodity it will affect the market one way or the other. The two analysis, fundamentals and technicals could be use to predict price movements on the chart but I would suggest using technical analysis for retail traders.

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Here is the daily timeframe of Oil chart. On the daily time frame price has dropped below key level of $60 per barrel and we saw a rejection from $65.00 per barrel. Moving averages are crossed to the downside showing a short term bearish trend. A restest of $60.00 per barrel or $62.00 creating a lower highs on the lower time frame of the chart for possible entry sell order to the downside target of $55.00 per barrel before our long term Buy order of $70.00 per barrel longs will be in play. That’s all I have for you guys, I will be back for breakdown on some currency pairs analysis.