Crude oil took a roller-coaster ride to nowhere this week. That big gap higher at the start of the week meant no serious trader was going to buy it up there. Instead, a lot of profit-taking took place, which caused both contracts to more than ‘fill’ their respective gaps. But towards the end of the week, the buyers stepped in once again to re-establish their positions, interestingly around the top of the resistance range that had been in place until the start of this week. This is technically bullish as it shows speculators are willing to see oil prices hold above the post-OPEC highs. I am therefore still bullish on oil and think we will see higher prices next week. However if Brent breaks below $52.80 support then there is a good possibility we will see $50 again and more consolidation going into the year end.
Source: eSignal and FOREX.com.