Psychology

Crude oil prices rise as bullish breakout WTI returns…

(MENAFN- DailyFX) Weekly Crude Oil Technical Outlook: Bullish

  • tear higher after speculation China is easing lockdowns, pushing commodities soar

  • US Crude (WTI) Breaks $90 Before Meeting Resistance At Historic Support

  • Brent futures break $95 p/b – is $100 back on the cards?

Potential China reopening Refueling bullish momentum as oil prices rise

Crude oil prices soar after speculation about easing lockdowns in China fueled a rally in commodities. As news of a possible reopening of the world’s largest economy boosted demand expectations, both WTI and Brent rose, pushing oil futures higher.

With the fundamental backdrop catalysing bullish momentum, US Crude Oil (WTI) futures rose above $92.00 on Friday.

The daily chart below shows that the recent one signaled an aggressive move by buyers that allowed them to push through $90.00. With a strengthening of around $88.00 from the September low, an increase in bullish momentum could push prices back up to the psychological level of $95.00.

Crude Oil (CL1!) Daily Chart

Chart prepared using TradingView

After falling from the June high of 123.68, a four-month sell-off propelled WTI to a September low at $76.5 before moving back above $80.00. As a strong rally drove price action higher, the same technical levels that supported WTI in 2013 and 2014 are now helping to limit the upward movement to $92.50.

With the October high of $93.64 and the $95.00 offering additional resistance, a move higher and a retest of $97.55 (the 61.8% of the 2001-2008 move) could push WTI back to the big $100.

Crude Oil (CL1!) Monthly Chart

Chart prepared using TradingView

— Written by Tammy Da Costa, analyst for DailyFX.com

Contact and follow Tammy on Twitter:

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