The weaker dollar is not assisting any move in crude oil at present which has currently stalled in the $91-$92 per barrel area following its sharp recovery last week from the low of $87.24 which was signalled by a long leg doji candle on the daily oil chart. However, despite the current sideways consolidation Friday’s candle, with the deep test to the downside, hinted at a further move higher with the low of the session at $90.10 finding strong support from the 9 day moving average, always a good, short term signal. For any continuation of the longer trend higher we now need to see a break and hold above the recent high of $92.36 and once clear then we will have a solid platform of support for a sustained move higher as we move towards our medium term target of $100 per barrel and beyond.
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