August 2014 was the last time oil prices above $100 a barrel, but technical analyst Louise Yamada says the charts aren’t ruling out a return to triple digits.
When asked if crude was never going to return to $100 a barrel Tuesday on CNBC’s “Futures Now,” Yamada replied “not necessarily,” though emphasized that there are a few key levels that oil needs to hit first on the way up.
“There are headwinds for oil, and remember that it’s been down almost 80 percent since 2008 and from the 2011 high,” she said. “And I think if you were to get to these targets, you’re going to be running into the resistance of that four-year breakdown in 2014.”
But in the short term, the managing director of Louise Yamada Advisors does see crude running up to $78, thanks to some bullish formations in the charts.
“This rally in oil has been a very slow-moving six-month process,” she said. “But we do have [a] measured target from a head and shoulders that has been in place for three years that could take us to $75 or $78, where you run into the major resistance from the four-year breakdown in 2014.”
This means that Yamada believes an 18 percent surge in oil could still occur in the short term.
The commodity is up over 9 percent year to date, holding above the $66 level on Tuesday.
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