WTI Crude Oil Outlook – Room to Rally 10% or More Before Big Levels Met
Crude Oil Technical Outlook:
- WTI crude oil has room to rally further
- Around the 77 mark lies substantial long-term resistance
WTI Crude Oil Outlook – Room for 10% Rise Before Big Long-term Level
WTI crude oil remains in a steady upward trend, recently finding some separation from a sticky area of resistance. Peaks from 2019, 2020 and March of this year were keeping a lid on price advancing any further, but that has been put into the rearview mirror.
The area around 65/66 will be viewed as a source of substantial support on any decline now that it has been cleared. As long as that holds, then the bias is neutral to bullish in the short to intermediate-term.
Looking to the left on the chart there isn’t substantial resistance beginning until nearly 10% higher from current levels, with the 2018 peak in focus at 76.72. This high came at an important juncture, as it was dealt at the 2011 lows, where a pair of bottoms were created that year between ~75 and 80. We can include the 2012 low at 81.03 in the mix as part of this resistance zone. With that included the resistance zone runs from 76.72 up to 81.03.
Getting past this decade-long area of resistance may be a difficult task on a first attempt. Similarly to how we saw oil in March get suddenly hit off the 2019/20 peaks, we may again see this happen at an even larger area of resistance.
But for now, oil is in open space and this keeps potential strong that it can continue rallying with limited set-backs. But again, even if we see a pullback from here, given the generally upward trend and support not too far below, a dip may just offer another opportunity for traders to enter into a bull market trend. It will take a substantial shift to turn the outlook from generally bullish to bearish.
WTI Crude Oil Daily Chart
WTI Crude Oil Weekly Chart
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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.