Crude Oil Price Forecast: Rally Aims to Reach $89 Target

Welcome to Extreme Investor Network, where we provide unique insights and analysis on the latest trends in the stock market, trading, and Wall Street. Today, we are excited to discuss the recent 16.4% rally in crude oil in just four weeks.

The rally in crude oil started from the June 4 swing low at 72.73, completing a test of support at the bottom of a large symmetrical triangle consolidation pattern. This week, the weekly high hit a short-term resistance at the top of the triangle, hinting at a possible bullish breakout. If crude oil rallies above 84.64, we may see a significant bullish move in the near future.

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The large symmetrical triangle breakout is likely to happen as the pattern reflects a contraction of volatility in the trading range for crude oil. A continuation of the current bull trend could potentially lead to a bullish breakout of the triangle, which is a signal that the bulls have been eagerly waiting for.

To better understand the potential target of this breakout, we can look at a measured move that highlights price targets ranging from 22.5% to 30%. The current advance aligns with the smallest measured move of 22.5%, pointing towards a price target of 89.23. This target falls within a Fibonacci target range from 89.03 to 89.58, indicating a potential area of interest for traders.

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In order to reach this target, crude oil will need to surpass the 87.90 swing high from early-April, triggering a continuation of the larger rising trend that began from the December 2023 swing low. Ultimately, a breakout above 84.64 would signal the breakout of a large bull pennant, setting the stage for further gains in the market.

For more insights on today’s economic events and market developments, be sure to check out our economic calendar on Extreme Investor Network. Stay tuned for more exclusive content and expert analysis to help you navigate the exciting world of trading and investing.

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