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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.
During an interview Tuesday on CNBC’s “Futures Now,” Yamada qualified that call by emphasizing that oil must first pass a few key levels.
“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.
