Crude has been on a torrid streak, surging 35 percent from its 2017 low to its highest in more than 2 years. Now, a technician who called the initial rally says there’s even more room to run.
With this week’s rally, oil is up almost 6 percent year to date. Back in July, when crude was trading in the mid-$40 range, Scott Redler of T3Live predicted a move past $50 on CNBC’s “Futures Now.”
Two weeks later, he doubled down on his call, and upped his target to the mid-$50 range. Fast forward to last week, when oil surged to its highest level since July 2015, a move that Redler said puts the commodity on the verge of breaking another key technical level.
“I do think there’s more upside” beyond $60 per barrel, Redler told CNBC last week.
On a long-term chart of oil dating back to 2015, Redler points out that crude just broke above a two year descending trend channel.
Now, with oil facing “resistance” at $57, Redler believes that the commodity could pull back a bit. It could revisit the $53 level, but investors should use the opportunity to buy for the next move higher.
“If we come back and hold above where we broke out, I do think the next move could take you to in the first quarter to about $62 to $64,” he said. That move represents another 12 percent rally from current levels, which oil could hit by the first quarter of next year.
