Crude Oil Price Outlook: Fresh Highs in Focus Post-Breakout
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CRUDE OIL PRICES PUSH TOWARD YEAR-TO-DATE HIGHS FOLLOWING RANGE BREAK
- Crude oil price action has surged 7% higher so far this week as bulls wrestle back control
- Topside breakout above technical resistance opens the door to fresh year-to-date highs
- Fundamental outlook for crude oil remains constructive and could propel the commodity
- Sharpen your technical analysis, learn about WTI vs Brent, or review this oil trading guide
Crude oil bulls look to have regained control of price action after sending the commodity 7% higher so far this week. Oil prices now trade comfortably above prior resistance posed by the $62.00-handle with robust economic data likely helping fuel the move. This brings to focus potential for crude oil prices to continue its rebound back toward year-to-date highs.
CRUDE OIL PRICE CHART: DAILY TIME FRAME (24 DEC 2020 TO 15 APR 2021)
Chart by @RichDvorakFX created using TradingView
Crude oil price action breaking out above $62.00/bbl coincided with a bullish MACD crossover and upswing in the relative strength index. This followed a breakout from an apparent falling wedge pattern, which are often formed during periods of consolidation. The upper Bollinger Band stands out as a nearside technical obstacle that might keep crude oil prices relatively contained.
Momentum behind the latest extension higher seems to have intensified and accelerated crude oil price volatility, however. This could lead to a Bollinger Band expansion, and statistically speaking, correspond with improved upside potential that facilitates higher crude oil prices. On the other hand, if crude oil bears attempt to make a push, the commodity could find buoyancy around its 50-day simple moving average.
Keep Reading – 8 Surprising Crude Oil Facts Every Trader Should Know
-- Written by Rich Dvorak, Analyst for DailyFX.com
Connect with @RichDvorakFX on Twitter for real-time market insight
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.