Crude Oil Futures Introduction
Crude oil futures are showing some bullish support after testing the $68 level again. This level is proving to be a fortress for bulls, requiring significant selling pressure to break lower. At the moment CL looks bullish and there are a few things that we can look at to reinforce this. Rememver however, this is only technical analysis… It is not perfect and only gives a small edge, the key is to work on the psychology aspect. You need to look within and work on that.
If you think that some technical pattern is simply going to make it for you, then you are mistaken. Trading psychology is very important and if you are ignoring it, its time you started focusing on it.
With that being said, lets look at CL futures.
Key Technical Patterns & Levels
Strong Support Zone: $64-$67
The highlighted support zone is a critical area for crude oil futures. This range has acted as a price floor over the past several months, where buyers have consistently stepped in. For bears to push prices below this zone, they would need extraordinary momentum, which is currently absent.
Descending Trendline Resistance
A downward sloping trendline dating back to mid-2022 is the key target for bulls. If a bounce does occur again out of the support zone, the next target is $75.30. We must keep in mind though tthat at any moment, geoplotical events could sned huge volatility through the CL market. With conflicts at an all time high, we must not underesitmate this posibility.
Bullish Case
- Support Zone Strength: The $64-$67 support area has consistently absorbed selling pressure, making it a formidable barrier. Bulls will defend this level aggressively.
- Target at $75.30: The immediate target lies near $75.30, representing the first significant resistance level. A successful breakout above this area could see prices challenge higher zones.
Bearish Considerations
- Volaitility from Geopolitical events.
Outlook & Summary
- Short-term (2-4 weeks): If the support zone holds, we could see CL move toward $75 in this time period.
- Medium-term (1-3 months): Depends on support zone.
- Long-term (3+ months): As long as the $64-$67 support zone holds, the longer-term outlook remains bullish.
