Oil: Technical indicators suggest near-term scope for advance - BBH

The May light sweet oil futures contract successfully tested support near $60 in the first part of last week before turning higher, points out Marc Chandler, Global Head of Currency Strategy at BBH.  

Key Quotes

“The nearly 1.9% gain ahead of the weekend, helped perhaps by news of much stronger than expected US manufacturing output (1.2% vs. median estimates of 0.6%) ensured the second consecutive weekly advance and the fourth in the past five weeks.   The weekly close above $62 and the technical indicators suggest near-term scope for another dollar or so advance.    The highs from late February are found near $64, and this is the main technical obstacle for a run at the highs near $66 seen at the end of January.”