WTI Crude Oil Technical Forecast – Channel Meets Big Resistance
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Crude Oil Technical Outlook:
- WTI crude oil trading higher within confines of upward channel
- Advance remains capped by 2019 and 2020 highs
- Watch for a break of either resistance or lower parallel of channel
WTI Crude Oil Forecast – Holding Steady Under Significant Resistance
WTI crude oil is trading within the confines of a channel at the 2019 and 2020 highs. It appears we are the verge of some type of make or break situation. If the lower channel line can continue to hold and price moves beyond resistance over 68, then the rally may have another leg higher in it towards the 2018 peak right around 77.
The current area of resistance that has ben in place since 2019, and validated twice since March, will then turn into a source of important support. But before we worry about that a breakout into the 68s or higher needs to happen first.
On the flip side, should resistance continue to prove problematic we may see the lower channel line give-way and lead to a sell-off. This could result in a relatively sharp down-move as the long-side is caught flat-footed and liquidates quickly.
Either way, breakout or rollover, time appears to be running out before crude makes a meaningful move. Once one side or the other breaks as outlined above then a trading bias will firm up. Until then we may see a bit more choppy price action.
WTI Crude Oil Daily Chart (channel meets big resistance)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.