“As much as traders and investors are watching for oil to hit $50, however, Strategas technical analyst Chris Verrone actually sees oil heading to $55,” reports CNBC.
SEE MORE: Commodity ETFs May Experience Seasonal Weakness in September
Many traders remain bearish over the short-term, betting on weakening seasonal trends. Money managers increased wagers on declines in oil prices to a record on increasing U.S. inventories and ahead of a seasonal refinery maintenance that will curb crude demand.
“Referring to a chart of oil dating back to last July, Verrone says that while oil has gone almost nowhere for the past four months, crude did break through what he describes as a “key level” at $48.55 this week. In other words, Verrone believes that by breaking through what he sees as resistance at the 50-day moving average, oil can make new highs and hit $55 with buying opportunities ahead,” adds CNBC.
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