(Bloomberg) -- Crude oil needs to rise above $73 a barrel by next week or face a pullback toward $60, Schork Group Inc. said. Oil has been unable to rise above an eight-month high of $73.38 a barrel reached on June 30, even as it crossed $70 each trading day this month. If the buyers fail to break resistance, they risk losing control within days, according to Stephen Schork, president of the Villanova, Pennsylvania-based consultant.“The market certainly appears to be consolidating,” he said in an e-mail today. “The bulls are running into static. Everyone expects this market to hit $75, yet we can’t break resistance in the low $73s.”
Oil has gained in the past four weeks on speculation fuel demand will recover as the global economy is showing signs of emerging from a recession. Crude futures for September delivery on the New York Mercantile Exchange rose 28 cents to $70.80 a barrel at 12:27 p.m. in Singapore. Prices have increased 59 percent this year.The market currently remains in an ascending channel that can be traced back to July 13, when oil climbed from $58.32 a barrel, the lowest in eight weeks, Schork said. Oil will return to late-July levels if it can’t push past resistance, he said. Crude closed at $69.45 a barrel on July 31.“The time is now for the bulls,” Schork said. “Either they manage to stage a rally toward $75 within the next week or they risk a corrective retracement back toward the low $60s.”
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