Crude oil surged above key resistance levels, reaching a new high of 78.52, and may continue its bullish trend towards the 200-Day MA at 79.96.

In this article:

Holds Above 20-Day MA Support

At 77.77 is the 20-Day line. The likelihood of reaching upward targets increases if crude closes the day above the line. A move over today’s high would therefore result in the generation of a bullish trend continuation signal. The upside for the advance appears to be a challenge of the 200-Day MA at 79.96. The chart’s trendlines are in close proximity to lower potential resistance regions. Observe the 78.6% Fibonacci retracement at 79.23 as well. The 78.6% price zone is more likely to be attained once the 61.8% price objective is surpassed. Observe that the swing high on January 29 confirms the price level.

Bullish Weekly Reversal Triggered

It may be that last week’s low of 72.73 completed the retracement. But crude remains in a downtrend and could test lower price levels if resistance turns it back down. However, the weekly chart shows an improving short-term bullish environment as well. On Monday, crude triggered a bullish weekly reversal as last week’s high of 77.81 was exceeded. Monday confirmed the advance with a close above the high.

Deeper Retracement Indicated on Drop Below 77.39

Should a more profound retreat precede a test of resistance at elevated prices, a decline beneath the current low point of 77.39 will serve as an indication. The 38.2% Fibonacci retracement, which is located at 76.31, is a little lower than the previous weekly support level of 76.60. The 50% retracement at 75.62 comes next. Additionally, take note of the expanding formation, or little lower trendline, that crossed the bottom of the most recent consolidation period. If the price zone is approached, it might serve as a guidance.

See our economic calendar to view all of today’s economic activities.