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Cramer for Crude Oil price
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Loading...With oil prices on the rise, Jim Cramer took to technician Carolyn Boroden's charts to determine whether the uptick is just a one-off or if it's time to get bullish.
She noticed that oil prices have been seeing both higher highs and higher lows, a healthy trend that could mean near-term upside if the pattern repeats itself.
"As long as oil can stay above its floor of support at the $45 to $47 area, Boroden believes it can go higher, and if it clears just a few more hurdles of resistance, then she wouldn't be surprised to see if crude ends up rallying from $50 and change all the way up to $57," Cramer said.
If oil prices are set to move up, there would be some technical clues in the stocks of big oil producers, so Boroden turned to their charts to determine any tangible effects.
Boroden typically tracks the size and length of past swings, and being the "Fibonacci Queen," runs them through a series of Fibonacci ratios to find key dates or price levels.
The charts of ExxonMobil (NYSE: XOM)and Chevron Corporation (NYSE: CVX) showed key support levels for both names. Exxon, which currently trades around $82, has one floor of support at $79 and a second from $76 to $77.
"She says that as long as the stock holds above at least one of these zones, then Exxon's more than likely to rally here. Boroden believes it could be smooth sailing up to the $89 to $91 area, with the stock perhaps rallying up to $99 if it can keep the momentum going," Cramer said.
Chevron, which trades around $108, also showed it has two support floors, one at the $104 to $105 level and another from $100 to $102. Boroden noted that Chevron's recent $106 low suggested the stock could be ready for a rally.
"Longer term, she wouldn't be surprised if Chevron can sail to $122," Cramer said.
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