Can Crude Set A Record High Yearly Close?

As we approach the last couple of trading days of the year, there's something interesting going on in the Crude Oil market that doesn't seem to be getting much attention. We could be about to see the highest yearly closing price in history. In fact, looking at yearly candlesticks, 2013 already put in the highest low for the year on record. Higher lows and higher highs is the definition of an uptrend right? Especially on a closing basis?

My pal Greg Schnell over at Stockcharts.com put out a note yesterday pointing out how close we are to setting record closing highs for the year. If Crude Oil can finish up above $99.20, it will surpass the 2011 closing price and will go down as the highest annual close ever.

Here are the yearly candlesticks going back 10 years. Notice the candle from 2008 where Crude Oil made all-time highs yet closed the year down in the 40s:

This has certainly been a fascinating development. I mentioned the bullish Crude Oil to Gold ratio last week, and now we're looking at the long-term chart putting in higher lows for the year and potentially setting a record high annual close. This has been a boring, sideways, frustrating market for several years. It's something I've actually stayed away from for the most part, fortunately. But it's looking more and more like a breakout to the upside could be coming, both on an absolute and relative basis. The $110-115 level has been key resistance for a few years now in the price of Crude Oil. A breakout above that should set the stage for a retest of the 2008 highs up near $150.

This is something we'll be monitoring closely in the beginning of the 2014...

Source:

Market Message Dec 26th 2013 - Greg Schnell (Stockcharts.com)

Tags: $CL_F $USO