Oil Set for New High in 2009, Barclays Says: Technical Analysis

Crude oil is set to rise above $74 a barrel in New York, passing this year’s high, after prices formed an “inside bar” pattern, according to technical analysts at Barclays Capital.

The highest and lowest prices on Aug. 4 were within the trading range of the previous day, a formation on a candlestick chart known as an “inside bar” that usually indicates the continuation of a price trend, Barclays analyst MacNeil Curry said in a telephone interview from New York yesterday. A narrowing gap between monthly contracts of Brent crude and a “positive macro backdrop” lend support, he said. (more)