Oil Above 200-Day, Advantage Bulls

On Tuesday, the price action of crude again landed on the trader radar with pros wondering if the momentum had just shifted.

Fast trader Joe Terranova thinks energy bulls may now have the advantage – in part because of a key technical move; crude oil surged back above its 200-day moving average .

(The 200-day is significant because chart watchers believe the trend line acts as a major inflection point – as a level or support or resistance. A break above, turns it into support.)

In addition, Terranova thinks fundamentals are bullish. “The oil market has priced in a recession in Europe. If the recession doesn’t happen – demand is strong. And we’re seeing tighter supplies,” he says.

All told Terranova thinks the path of least resistance is higher.

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Trader disclosure: On December 20, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long VRTS; Terranova is long IBM; Terranova is long LQD; Terranova is long MUB; Terranova is long EMC; Terranova is long CSCO; Terranova is long AXP; Terranova is long SBUX; Terranova is long TRLG; Murphy owns AKS; Murphy owns BAC

For Patty Edwards
Trutina Financial is long APPLE (AAPL)
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Shelter Harbor Capital is short C

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For Sara Senatore
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Best Buy – Wedbush Securities makes a market in the securities of the subject company.

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