Introduction
Crude Oil has surged 25% in the past three weeks. Escalations in the Middle East and certain attacks, which led to Saudi Arabia’s East-West pipeline being shut down, have been the main factors causing the rise in oil prices.
In our September 11 analysis, we identified $102–$105 as the main resistance zone and $100 as the immediate pivot. Now that we are seeing $105 barrel oil, the next immediate level is the March 9th high of $108.82. If we see that break, crude could be moving toward $130 or even higher coming into the last quarter of this year.
Daily Chart
Weekly Chart
Possible Trades
It is difficult to find high-probability setups in CL right now. We do not see any chance for shorts right now and at the same time, the long trade could have been buried and gone until we see a consolidation phase.
Looking for longs on a shorter time frame and scalping could be an option, say the 15min or 60 min time frames.
