Crude Has Several Catalysts to the Upside, Sees $65-$70 if $60 Breaks

Crude has moved lower by over $10 per barrel over the past five trading sessions. Alan Harry of Harry RE Trust says the move down has been surprising, especially since there was no bounce back. Usually these markets have some sort of up and down movement, with a pause to consolidate, but a this persistent move to the downside is due to lack production cuts and a lot of product on the market. That said, Harry believes excess will start to come off the market which help crude prices. He also points out crude expiration will lend some support due to where prices are now relative to the new contract. $52.50 and $50.80 are key levels to the downside, but Harry says he is focused on the upside. $57.50 is the first key level and the next technical and psychological level is $60. He sees crude moving to $65-$70.