Skip to Content
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
Crude Oil Price Forecast: WTI Starting to Set up for a Rally

Crude Oil Price Forecast: WTI Starting to Set up for a Rally

Paul Robinson,
What's on this page

Crude Oil Technical Highlights:

  • WTI tested and so far holding a sizable area of support
  • Attempting to break free from a downward channel
  • Could see a sizable rally develop in the days/weeks ahead
Oil Forecast
Oil Forecast
Recommended by Paul Robinson
Check out the Q3 Crude Oil Forecast
Get My Guide

A couple of weeks ago WTI crude oil (CL) traded below support created just below 93 a few months back, but rejected lower levels in a bullish manner by posting not only a reversal day but weekly candle as well. Yesterday’s turn higher from around support suggests a successful retest may be in.

WTI is currently trying to rise out of a downward channel dating to early June. Getting separation from the channel will reinforce the test of support. If we see this take place then we could see oil rally significantly in the days/weeks ahead.

Despite coming out of the channel the first hurdle that needs to be crossed to break the downward trend is the recent swing-high at 100.95. From there we could see oil rally to the 112 to 118 area before running into resistance. It may not be a rip-roaring rally, but a solid tradable variation that provides opportunities for would-be longs.

On the flip-side, should we see oil fail to hold up and break support, then the next level to watch will be the 200-day moving average. At that juncture oil may find a low, but it will be below major price support and thus won’t be viewed as bullishly as it is now.

All-in-all, the combination of big support, channel break, and potential for a higher-high over 100.95 makes oil an interesting market to keep high on the radar right now. We aren’t quite there yet, however, so it may be prudent to wait for all the pieces to line up before having a strong bullish trading bias.

Futures for Beginners
Futures for Beginners
Recommended by Paul Robinson
New to Futures? Check out this guide.
Get My Guide

Crude Oil (CL1!) Daily Chart

crude oil daily chart

WTI Crude Oil Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---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.

DISCLOSURES