Technical Analysis

Crude oil makes a comeback today. Settles at $81.25, up 1.07%

Crude oil sets the support and resistance going into next wk

A week or so ago, the price of crude oil moved above a key swing ceiling between $82.43 and $83.44 (see yellow area and read numbered circles on the chart above). The price moved above that ceiling on Wednesday of last week, closing at $84.40.

  • The next day (on Thursday) a new high was made going back to November 2022 at $84.89, but momentum could not be sustained, and the price moved back within the swing area.
  • On Friday last week, the high price reached $83.81. The low price was at $82.23. Each of those levels extended outside of the swing area ceiling but the price closed within the high/low swing area.
  • On Monday of this week, the price moved lower and closed below the swing area. Buyer’s started to turn to sellers.
  • Momentum increased to the downside on Tuesday and Wednesday with the low price on Wednesday reaching $79.05 just above the $79 target area.
  • On Thursday the low price reached $78.95, this time just below the $79 level before bouncing higher.
  • Finally, today the low price reached $79.02, once again just above the $79 level.

So overall, the buyers had their shot last week with the move above the high of the swing area and $83.44. They failed. This week, the sellers had their shot at breaking below the $79 level, but they are failing as well.

So with support holding and resisting’s failing, for traders, we’ve defined a range.

  • Support at $79 going into next week.
  • Resistance is back between $82.43 and $83.44

With a price currently at $80.80, pick your poison.

Fundamentally, the main drivers are things like

  • Saudi reducing supply
  • Fairly strong demand in the US, with the potential for slowing if the Fed continues to tighten and the forever expected slowdown occurs in the 2nd half
  • Concerns about slow growth in China as a struggle with their real estate woes and lack of balance from the Covid reopening

For the week the price is down $2.33 or -2.81%, but that came after 7 consecutive weeks that saw the price move up 26.61% from the low to the high of that seven-week trading range

For the full review in a video, click on the link below:

Articles You May Like

EURUSD cracks below 100 hour MA at 1.06748
GBP/USD Price Analysis: Consolidates near multi-month low, below 1.2400 ahead of UK CPI
European major indices close higher. Encouraged by the weaker UK inflation data today.
Canadian Dollar Rides High on Inflation Data, Dollar and Euro Struggle
Gold Rate Today: Gold trades range bound ahead of Fed policy outcome. What should traders do?

Leave a Reply

Your email address will not be published. Required fields are marked *