The trend in the commodity remains strong and speculators may continue to believe additional value is possible.
New Winning Streak for Crude Oil
U.S Crude Oil continues to trade beneath 65.00 U.S Dollars a barrel this morning. But the commodity was able to produce modest gains yesterday and has continued its winning streak early this week.
Crude Oil Inventories data came from the States yesterday, and the result showed a big jump in supply. This is an indication U.S producers view the higher prices for the commodity optimistically and are putting more drills into the ground.
New Highs for Long-Term Range
Crude Oil has experienced a solid upwards trend the past few months and has begun to create a new long-term range. The commodity has broken important resistance and speculators have taken notice.
The ability of U.S Crude Oil to reverse higher the past couple of days may be another signal the commodity may test better values. Support appears to be around 63.00 U.S Dollars and resistance seems to be the 67.00 Dollars juncture.
In the short term, we believe U.S Crude Oil may be positive. The mid-term and Long term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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