Are you keeping an eye on the price of crude oil and wondering if it’s due for a pullback? Well, you’re not alone. The recent surge in price has definitely caught the attention of many traders and investors.
Today, crude oil was up by 11.7% at its highest point, from the most recent swing low of 72.73. Despite this significant increase, demand for crude oil seems to be staying strong. It has even managed to break through potential resistance levels, including two moving average lines and a trendline. The bullish price action we saw today suggests that there may be more room for upside before a notable retracement occurs.
During a potential pullback, it’s important to keep an eye on key support areas that were once resistance levels. These levels act as possible areas where the price of crude oil could find support and bounce back from. Some of the important support areas to watch include the 50-Day MA at 80.11, the 200-Day MA at 79.77, and 79.25, which was a peak in January. Additionally, the 61.8% Fibonacci retracement level at 82.1 is likely to be the next target for crude oil. This level coincides with the intersection of two trendlines, one rising and one falling.
If crude oil manages to close above the downtrend line on a daily basis, it would signal a significant show of strength. Previous breakout attempts in April may have failed, but this second attempt seems more promising. A move above the 87.90 April swing high could signal a bullish trend continuation from the December swing low. The weekly chart also confirms this bullish sentiment, with a series of higher highs and higher lows forming.
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