Hello and welcome back to CantosCharts. I'm David Jones from spread betting company IG Index and today we're going to have a look long and shorter term at what the charts have in store maybe for the price of oil.

I'm going to start off with a long-term view of oil. We're going back to the lows from 2009. Of course, as we all know, 2008 was when we saw oil peak up around $150 a barrel and then spent most of that year sharply in decline getting down to around about $33 a barrel at the beginning of 2009. But since then, we saw a recovery for most of last year and we ended the year up around about $80 a barrel, pushed higher into early January and then sold off.

And then going back to the trend line thing that I was discussing earlier in the week for the S&P 500, I think it's a similar thing with oil at the moment where if we drew trend lines on the recovery from Jan/Feb 2009, we would see various trend lines along the way got broken as the trend of oil, the momentum slackened off a little bit.

So the angle of ascent reduced, but the market, after a small correction, pushed higher.

So for me, even though we're breaking below what many people would consider to be the trend line for oil coming into this year, I think the recovery trend for oil is still up.

The important thing for me is we haven't taken out this previous significant low. So the last low in December was around about $68 a barrel and then over the course of the next few weeks in very short order oil bounced back $16. So we saw more than a 20 per cent rise by oil off these lows. So for me, $68, big level to watch in oil.

We've already come back in the last couple of weeks and had a little look at that level and again, the market has rejected prices down there fairly sharpish. We've got this big spike left on the daily candle, so we've seen a sharp rejection there.

So, based on the chart at the moment, I think the obvious medium-term target for oil is for a run back up to these highs for the year up around about $84 a barrel and of course, if the trends continue, the expectation is that $84 level to be taken out and for oil to push higher. So maybe an ambitious medium-term target for oil is for a run back up to $90 a barrel at some point before the summer.

Let's have a look at the short-term and you'll see it again. You're seeing exactly the same thing but in a bit more detail what we actually saw when oil came back to test these lows in December. There is the December low. So we hit, in the second week of December, we traded back to about $68/$69 a barrel and then we saw this fantastic rally into early January. The market gave up a chunk of those gains, but again, you can see second week of Feb the market has come back down, rejected these prices very quickly below $70 a barrel and once again we've bounced back up.

So again, looking at these levels here, just keeping it simple and looking at previous highs, I think the next obvious target early Feb highs around about $78 a barrel and if we break through there, it looks to be reasonably plain sailing back to $84 a barrel.

As ever, nothing moves in a straight line. It wouldn't be surprising to see a bit of weakness in the short-term. But again, for me, as long as we don't take out these lows of around about $68.50 a barrel, then it looks to be a buying opportunity. The only dips down to the low $70s in oil look to be a good place to go long with a stop loss below those lows for the year so far. So all in all, a positive outlook for oil.

That's it for me on CantosCharts this week. I hope you found it useful and I look forward to seeing you again in the future.