Charts: Oil 'Singing Bear Songs,' Heading to $66
The price of oil is set to extend its recent slide and fall toward $66 a barrel, Clive Lambert, director at FuturesTechs, told CNBC.
“The market’s struggling and we’re seeing some weakness coming in. We’re seeing the volatility really tighten up,” Lambert said while taking a technical look at the London Brent crude charts.
“The candlesticks are starting to sing bear songs and we’ve got momentum studies saying that we’re running out of steam to the upside,” he said.
Oil pushed up to around $75 a barrel in recent sessions, but then retreated in a sharp slump to around $71 a barrel. Lambert thinks this is because the commodity hit a major resistance level and couldn’t sustain it.
He now sees the cost of a barrel of Brent falling further until buyers step in at $68 and then $66.
Lambert recommends holding off on buying gold as its recent consolidation period has been going on a bit too long without breaking to the upside. He suggests waiting until the price of gold starts to firmly push higher, out of its trading range.
- Watch the full interview with Clive Lambert above.
For the Investor: