Welcome to Extreme Investor Network, where we provide you with unique insights and analysis on the Stock Market, trading, and all things Wall Street. Today, we will be discussing some bullish signals in the crude oil market that may be of interest to our readers.
Bullish Reversal Above 82.81 Triggers
Today, a bullish reversal was triggered in the crude oil market as prices advanced above Wednesday’s high of 82.81. This comes after a successful test of support at the 20-Day MA earlier in the trading session. The price action around the 20-Day MA highlights the strength of this support level. With a close above 82.81, we may see crude oil challenge the recent swing high of 84.74.
Second Breakout Above Trendline may be Next
Although there was an upside breakout through the top trendline last week, it failed to follow through, leading to a retracement this week. The bullish reversal seen today may signal the beginning of a rally that could trigger a second breakout, potentially with greater success. Resistance around the downtrend line was tested multiple times recently, but strong demand was lacking. Last week’s high marked a significant rally, so a retracement was to be expected.
Bull Trend Continues Above 83.01
Looking ahead, a rally above today’s high of 83.01 could signal a continuation of the recent uptrend in crude oil prices. There may be some resistance around the 83.80 area, where two trendlines intersect. However, a decisive breakout above last week’s high of 84.74 would confirm the continuation of the bull trend that began in early June.
Measured Move Targets 89.23
Based on previous measured moves in crude oil, it appears that there is potential for prices to reach the 89.23 price level before the current rally is complete. This level would mark a 23.1% advance and align with a larger Fibonacci confluence zone target. Keep an eye on this target as the rally progresses.
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