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Charts: Get Used to $50-$70 Oil

CNBC.com
Monday, 15 Jun 2009 | 6:18 AM ET

If oil's rally continued toward $90, then when it dipped again, it would be unlikely to reach lows hit in March. However, if oil fails to reach $90, it is likely to retest March lows, Robin Griffiths, technical strategist at Cazenove Capital told CNBC.

New Bull Market for the Nikkei: Charts
Japan's stock market is in a "prime uptrend" and is going into a new bull market, Robin Griffiths from Cazenove Capital said Monday. And get used to $50-$70 oil, he told CNBC. Griffiths also looked at charts for the 30-year US T-Note yield and Barclays.

If oil were to carry on towards $90 a barrel, that would "damage" any chance of further "V-shaped" recoveries in stock markets, Griffiths said.

"The longer-term trend (for oil) will resume in the upward direction," he said. "We should get used to oil being in the $50 to $70 range."

For the risk-adverse, the 30-year U.S. Treasury note yield is one of the "lowest risk assets you can take and is offering you now a greater return," Griffiths said.

"A roundup between these levels (4.63%) and 4.5(%) maximum yield is where the long-end of the bond market is going to come out as the most compelling investment for most people," he said.

- Watch the full interview with Robin Griffiths above.

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