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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • (ASEAN Fundy) US Dollar Forecast: Turning Point Reached? USD/SGD, USD/THB, USD/IDR, USD/PHP #USD $USDGSD $USDTHB $USDIDR $USDPHP https://www.dailyfx.com/forex/fundamental/article/special_report/2021/10/25/US-Dollar-Forecast-Turning-Point-Reached-USDSGD-USDTHB-USDIDR-USDPHP.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/87N97EGWdr
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/N2GqH7QoOd
  • RT @mkraju: Manchin signaling he’s open to $1.75T for social safety net bill, per source briefed on matter, but it’s unclear where the pric…
  • Further your forex knowledge and gain insights from our expert analysts @JohnKicklighter and @JStanleyFX on $USD with our free Q4 market analysis guide, available for free today. https://t.co/7G7pWntiyY #DailyFXGuides https://t.co/XYCRng3hEW
  • RT @JournalistRoss: From CNN's @mkraju: The goal among Democratic leaders is to have a vote Wednesday or Thursday on the infrastructure pac…
  • *Reminder: Weekly Strategy Webinar tomorrow at 8:30am ET on @DailyFX !! https://t.co/lxd5fZnn4H
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/L15w1dzclc
  • Wow Liverpool... https://t.co/9Mx6Xmw4iS
  • With the $SPX, Bitcoin and Fed 2022 rate forecasts pushing record highs; the heavy economic docket for the coming week will make for some loaded trading potential. The events and markets I'm looking at ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/10/23/SP-500-Reversal-ECB-Decision-FAANG-Earnings-Top-Volatility-Themes-Next-Week.html https://t.co/1SGirtalSb
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/wdbXlx7ChB
Crude Oil Blows Through Resistance on Way to Seven Year Highs

Crude Oil Blows Through Resistance on Way to Seven Year Highs

James Stanley, Senior Strategist

Crude oil talking points:

  • Oil prices have made a massive move on the way to fresh seven year highs.
  • While there’s certainly supply constraints to point to, the technical move feels a bit overbought at the moment. Tread carefully.
  • 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

The year of crude oil continues! It might be difficult to remember but it was just last April that crude oil prices pushed below the zero line and here we are eighteen months later and there’s a veritable mania that’s chasing oil prices higher now.

Perhaps most interesting to a technician like myself is the areas on the chart that have been tested through. This week saw a major zone of resistance taken out near six-year-highs, and this was the same zone that had turned around the advance back in July, leading to a retracement of 19% over the next six week until oil finally caught support at the May swing low.

But since that May swing low helped to set the low in August, price action has been moving on a one-way-train with only brief pauses in its ascent. The big-bodied zone of resistance running from the 75 psychological level up to the 76.72 swing high from 2018 was a mere speed bump, at least so far, and prices have now gained as much as 28.5% in less than a month-and-a-half.

Crude oil daily price chart

crude oil daily price chart

Chart prepared by James Stanley; CL2 on Tradingview

Crude oil strategy near-term

Chasing the move at this point could be extremely difficult. Price action has simply jumped so far way from any nearby swing lows or relevant points of recent support that the risk outlay in trying to ride this higher could be massive.

For those that are looking at the bullish side of oil prices, a pullback to support at that zone of prior resistance could offer a more prudent and potentially risk-efficient way of following the trend higher.

Crude oil monthly price chart

crude oil monthly 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