Crude could bounce back to $90 by year end

By Gnanasekar Thiagarajan, director, Commtrendz Research

After failing to cross the $80.49 mark made on 22nd May 2018, crude prices gave in to selling pressure on 11th July 2018. From there it has been a one way streak. Important support at $72 has been broken recently — being a culmination of two important trend line support points.

Prices are now headed towards the next important support at $67.00 levels followed by a critical support at $62.00 in the coming sessions. These are fibonacci retracement levels which typically market participants look at to identify important supports and resistances when prices are trending higher/lower.


Though we see some weakness in prices in the near-term, the bigger picture still continues to indicate bullish tendencies. Therefore, we expect prices to initially edge lower towards $64-65 range or on a extreme basis even to $60 levels and then gradually push higher again towards the recent highs at $80 and eventually towards a potential long-term technical target around $90 by the year end.