Technical Analyst Sandy Jadeja of City Index (http://www.cityindex.co.uk/) shares his market insights for 24th February, including indications of positive momentum for oil.

"Volatility for a trader can be a blessing or curse depending on which side of the move a trader is established in. The recent spike in Crude Oil had certainly caused distress for all Short positions as Oil spiked up +14.82% over the last five trading days. Since the low of $87.09 on Nymex April Crude Oil, the commodity has reached a Technical Resistance level which may push the contract back lower over the next few days. $99.70 - $99.54 is a 1.618% Extension taken from the January 31st High of $94.89 and the Low of $87.09 and this area often provides a technical hurdle for markets.

If we take the trend of oil as into consideration, then the recent thrust higher had already been a blessing for traders who have been on the Long side of the market. A look at the Daily chart shows that four days prior to the spike, momentum had already turned positive. A break above $95.47 indicated that a move higher was likely as long as $89.77 was not violated.

However, the hourly chart showed that on February 17th momentum had turned positive indicating buyers coming into the market and once crude had moved above $88.10 the potential for upside moves had increased. If Crude continues higher then we could be looking at $106.62 as the next target. For the short term the contract will need to hold $89.70 and $93.54 - $92.02 as key support levels."

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