Crude Oil Price Chart
Since bottoming out at a multi-year low at 16.01, crude oil prices have rallied and risen over 120 percent. However, recent price action suggests the cycle-sensitive commodity’s ascent may experience a pullback as it trades in a critical cross-section. The price parameters involve the mid-April uptrend and stubborn, familiar resistance at 36.45.
If the ceiling holds, the slope of appreciation that carried crude oil prices to their current levels will likely then be invalidated. A short-term pullback may then ensue, though selling pressure could start abating at a narrow support range between 28.70 and 29.10. However, if that floor cracks under the weight of sellers, it could open the door to retesting the multi-year swing-low at 16.01.
On the other hand, if crude oil prices bounce back from the 28.70-29.10 support zone, it could open the door to retesting the ceiling under which it had just capitulated. If upside momentum prevails and resistance is broken there, the next major obstacle to overcome will likely be the pre-OPEC meeting plunge at 45.51.
Since bottoming out at a multi-year low at 16.01, crude oil prices have rallied and risen over 120 percent. However, recent price action suggests the cycle-sensitive commodity’s ascent may experience a pullback as it trades in a critical cross-section. The price parameters involve the mid-April uptrend and stubborn, familiar resistance at 36.45.
If the ceiling holds, the slope of appreciation that carried crude oil prices to their current levels will likely then be invalidated. A short-term pullback may then ensue, though selling pressure could start abating at a narrow support range between 28.70 and 29.10. However, if that floor cracks under the weight of sellers, it could open the door to retesting the multi-year swing-low at 16.01.
On the other hand, if crude oil prices bounce back from the 28.70-29.10 support zone, it could open the door to retesting the ceiling under which it had just capitulated. If upside momentum prevails and resistance is broken there, the next major obstacle to overcome will likely be the pre-OPEC meeting plunge at 45.51.