Crude oil has been grinding higher since the December low, but after a 4-week period of choppy trade momentum has turned higher.
Whilst $80 has been a tough level to crack in recent week, we suspect a breakout is now on the cards
- 200-day MA has provided dynamic support
- Falling wedge into 200-day MA
- Bullish range expansion out of the falling wedge
- RSI (14) curling higher from the neutral zone (50)
Prices are teasing the $80 level during a quiet Asian session. Bulls could either look to enter the breakout above $80 alongside rising volume, or seek dips down to the $79 handle / 2023 open price in anticipation of a breakout.
The bias remains bullish above the $200-day MA with $84 now in focus
Whilst $80 has been a tough level to crack in recent week, we suspect a breakout is now on the cards
- 200-day MA has provided dynamic support
- Falling wedge into 200-day MA
- Bullish range expansion out of the falling wedge
- RSI (14) curling higher from the neutral zone (50)
Prices are teasing the $80 level during a quiet Asian session. Bulls could either look to enter the breakout above $80 alongside rising volume, or seek dips down to the $79 handle / 2023 open price in anticipation of a breakout.
The bias remains bullish above the $200-day MA with $84 now in focus
Comment:
So far, so good. We've seen a nice two-day pullback and WTI is showing signs of stability above $80. Bulls could seek dips to the $79-$80 level if the retracement deepens, otherwise the bias is now for the move towards the $84 target.
