- Technical analysis of Crude Oil shows some bullish opportunities across multiple time frames.
- Key support and resistance levels identified.
- The psychological level could come into play as a significant bullish target.
Weekly Chart Analysis:
The weekly chart gives us a broader perspective and a longer-term view that we use for our trend analysis which means the weekly doesn’t necessarily have to be a chart we look at taking positions. The noteworthy psychological $100 level stands out, but before we get there, let’s focus on the more immediate price levels. The recent low of $67.05 forms the most significant support zone on the medium-term charts. Bulls need to see price remain above this level in order for the medium-term outlook. At the moment, there is no real sentiment that is dominating the weekly. Price has actually just moved sideways since the beginning of 2023 if we look at this time frame.
Daily Chart Analysis:
The daily 50 MA is getting close to crossing below the 100 MA, forming a possible death cross. This is not much of a worry for bulls, however, because it does not come after an extended uptrend. This is still during the sideways price action, so it is insignificant. If prices rally from here, we could see some resistance at the moving averages as they are very close together now.
Zooming into the hourly chart, the support and resistance levels become more immediate here, with $74 forming a near-term support zone. Resistance at $78 is the first test for buyers. Bulls need to see price close above these levels with conviction to confirm a bullish bias could be returning.
Levels to Watch:
- Immediate Support: $74 on the hourly chart.
- Near-term Resistance: $78, also seen on the hourly chart, followed by $95.03 from the weekly chart as a longer-term target for bulls.
- Psychological Level: The $100 mark remains a significant psychological barrier and a potential target for bullish traders.
While we maintain a subtle bullish bias, it’s important for us to observe how CL will react at these levels as they could be potential turning points.
As always, remember to keep solid risk management and a trading plan when you trade at OneUp Trader.