Technicals | Feb 15 2012
By Rudi Filapek-Vandyck
Technical market analysts at Barclays Capital in London remain sceptical about further upside potential for crude oil futures. They do believe WTI can stretch as far as US$103.90/bbl, but divergence between current momentum indicators and price action tells the analysts that's about as far as WTI can go. Their target for the real price of oil, Brent futures, stands at US$119/bbl.
The analysts are also of the view that gold has probably more weakness ahead. They seem worried about silver prices. Copper appears on its way to US$8280/t after which the analysts will return to a bullish stance, they state. But what really stands out in their latest market assessment is the view that the underlying trend seems to be rolling over for nickel, implying more weakness should be expected. Nickel is looking increasingly bearish on price charts, report the analysts.
In their view, this may result in a resumption of nickel's longer term downtrend.
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