Crude oil rallied to its highest level since late December this week, and according to one technician, there are even more gains to come in the short term.
"When you look at the chart of crude oil on the heels of Wednesday's explosive move, you can see that it's not too late to buy," said Rich Ross, head of technical analysis at Evercore ISI on Thursday's "Trading Nation." "I think crude is going to $65" a barrel.
Crude oil is down nearly 50 percent from its 52-week high set in June 2014. But Ross' chart work suggests that a recent double bottom formation has given oil a strong base of support, which will set the stage for more upside.
"Importantly, Wednesday, you see a breakout from the neckline of the [double bottom] pattern which comes in right around $54 a barrel," said Ross. "What's great about the breakout [Wednesday] is that the rally not only took out the neckline, but it crossed above its 100-day moving average for the first time since last summer." Those two factors, said Ross, are generating a confirmed buy signal.
"I like to use these base breakouts as a measuring tool," he added. "So if you take the height of the pattern, in this case it's $10, and add it to the current price, we get a $65 target." Crude oil hasn't been above $65 since late last year. "There's plenty of upside potential, especially given the magnitude of last year's decline."
To Ross, the message is simple, "buy crude oil right here."