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Crude Oil Price Surge Flirts with Breaking 11-Year Chart Barrier

Crude Oil Price Surge Flirts with Breaking 11-Year Chart Barrier

Ilya Spivak, Head Strategist, APAC

CRUDE OIL TECHNICAL ANALYSIS - TALKING POINTS:

  • Crude oil prices gap upward after Houthi drone hits Saudi Arabia
  • Near-term follow-through puts April’s swing high in the crosshairs
  • 11-year trend resistance pressured, warning of structural breakout

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Crude oil prices gapped sharply higher after Yemen’s Houthi rebels struck energy infrastructure targets in Saudi Arabia. The surge put the WTI contract well north of resistance capping gains since late April. In fact, trading opened above the subsequent layer of resistance in the 60.04-84 area.

The next upside barrier lines up in the 63.59-64.43 zone. A breach above that confirmed on a daily closing basis opens the door for a challenge of five-month highs in the 66.09-66 region. The $60/bbl figure has been recast as near-term support. September’s former swing top at 58.76 follows thereafter.

Crude oil price chart - daily

Daily crude oil price chart created using TradingView

Putting current volatility in the context of longer-term positioning shows prices to be testing resistance limiting upside progress for over a decade. Finishing the month above its upper boundary – now at 70.66 – would warn that structural reversal of the dominant trajectory is afoot.

Crude Oil Price Surge Flirts with Breaking 11-Year Chart Barrier

Monthly crude oil price chart created using TradingView

CRUDE OIL TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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