News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Heads Up:🇯🇵 BoJ Gov Kuroda Speech due at 06:17 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-04-14
  • Wall Street Futures Update: Dow Jones (-0.003%) S&P 500 (+0.073%) Nasdaq 100 (+0.021%) [delayed] -BBG
  • (Sentiment Weekly) Japanese Yen, Swiss Franc Analysis: USD/JPY, USD/CHF May Fall as Long Bets Rise #Yen #Franc $USDJPY $USDCHF https://www.dailyfx.com/forex/technical/article/special_report/2021/04/14/Japanese-Yen-Swiss-Franc-Analysis-USDJPY-USDCHF-May-Fall-as-Long-Bets-Rise.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/6EXLAB614y
  • Retail traders appear to be reducing long exposure in the Euro after recent gains. This hints that EUR/USD and EUR/JPY may rise in the near term, but could this trend last down the road? Find out from @ddubrovskyFX here:https://t.co/Y1d4DXeKEE https://t.co/JmGCbxkfWp
  • Gold Prices Probe Barrier as Inflation Data Sinks the USD and Yields https://www.dailyfx.com/forex/market_alert/2021/04/14/Gold-Prices-Probe-Barrier-as-Inflation-Data-Sinks-the-USD-and-Yields-.html https://t.co/bdNaQQsMqu
  • The Indian Rupee rose as the Nifty 50 slightly fell after the RBI left benchmark rates unchanged despite recent weakening inflation and a massive fiscal spending plan. Will USD/INR bounce? Find out from @ddubrovskyFX here:https://t.co/SwufKMOwfQ https://t.co/R2XfXKiRT5
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.65%, while traders in France 40 are at opposite extremes with 80.44%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gxv7FwyhsM
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.50% 🇦🇺AUD: 0.26% 🇬🇧GBP: 0.16% 🇨🇭CHF: 0.11% 🇪🇺EUR: 0.10% 🇨🇦CAD: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/hQBjkAnaA1
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.35% Germany 30: 0.04% US 500: 0.00% FTSE 100: -0.06% Wall Street: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/VrybX61UEU
  • British Pound Price Outlook: GBP/USD, GBP/JPY Poised to Extend Climb - https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2021/04/14/British-Pound-Price-Outlook-GBPUSD-GBPJPY-Poised-to-Extend-Climb.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $GBP $GBPUSD $GBPJPY https://t.co/rDOIqMJQfk
Crude Oil Price Outlook: Crude Crafts Range, Eyes Confluent Resistance

Crude Oil Price Outlook: Crude Crafts Range, Eyes Confluent Resistance

James Stanley, Senior Strategist

Crude Oil Talking Points:

  • A riveting run in oil after the Presidential Election has finally found some element of resistance.
  • Prices have been range-bound for the past couple of weeks, but the preceding bullish trend was extremely consistent. Are buyers taking a break or is this prelude to a deeper reversal?
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.
Advertisement

To say that oil prices have been choppy of late would be an understatement. But, with a bit of perspective, that choppiness can take on form…

Perhaps more surprising is from where this lack of direction comes from, as oil prices launched higher after the Presidential Election and didn’t really stop or slow down until mid-March. Of course, there was some political drive in there but the technical backdrop has been equally supportive as a bullish trend continued to run until a significant area of resistance came into play early last month around the $67 handle on the chart. Since then, the music has stopped, or at least slowed into a grinding backdrop within an approximate $4 range.

Crude Oil (CL2) Two Hour Price Chart

crude oil two hour price chart

Chart prepared by James Stanley; CL2 on Tradingview

Taking a step back to the daily chart can help to put this recent grind into scope. Much of the below chart is the same as I had published two weeks ago. At the time, I was looking at a significant zone of confluent resistance that had come into play, marked by a couple of different Fibonacci levels. That resistance has held and prices have pulled back.

But from the below chart, you’ll probably also notice a trendline projection that’s coming into play to help set support for the past few weekly bars. This will be touched on a bit deeper.

To learn more about trendlines and how to draw and work with them, check out DailyFX Education

Crude Oil (CL2) Weekly Price Chart

crude oil weekly price chart

Chart prepared by James Stanley; CL2 on Tradingview

Crude Oil Strategy Near-Term

To recap, we have a longer-term bullish trend in oil that’s currently beset by a near-term range, following a resistance test at a really big spot on the long-term chart.

So, at this point, the trader’s options are fairly clear: Either trade the range or wait for a break. There is, however, the possibility of threading short and long-terms, by approaching that near-term range with a topside bias, looking for the longer-term trend to push up for another re-test of the resistance zone running from 64.31-67.19.

An approach of this nature can be nudged in a variety of directions. For those with ultra short-term views, range support in the 57.31-58.33 area could allow for bullish scenarios, looking for first a test of range resistance followed by an extension of the bullish move. Alternatively and for those with a slightly longer-term horizon, awaiting a solid hold of support at the 60 psychological level may be more fitting. As noted on the prior weekly chart, those underside wicks over the past few weeks, around the trendline projection but also confluent with the 60 psych have helped to keep the longer-term look as bullish. That can be incorporated in a slightly shorter-term horizon by watching for the key event of a 60 support hold.

Crude Oil (CL2) Daily Price Chart

crude oil daily price chart

Chart prepared by James Stanley; CL2 on Tradingview

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES