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Crude Oil Price Outlook: Fresh Highs in Focus Post-Breakout

Crude Oil Price Outlook: Fresh Highs in Focus Post-Breakout

Rich Dvorak, Analyst

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CRUDE OIL PRICES PUSH TOWARD YEAR-TO-DATE HIGHS FOLLOWING RANGE BREAK

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.

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CRUDE OIL PRICE CHART: DAILY TIME FRAME (24 DEC 2020 TO 15 APR 2021)

Crude oil price chart technical forecast

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.

Oil - US Crude Bullish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -1% 7% 2%
Weekly -8% 61% 12%
What does it mean for price action?
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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.

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