- CL approaches $100 as a major psychological level.
- Fibonacci analysis shows next possible target is $94 at the 50% retracement.
- Long trades could be made on pullbacks on shorter time frames.
Last week, CL broke out of a key resistance level and surged above $82. The market is closing in on $90 as we speak, which brings the psychological $100 level into play. Market fundamentals are driving bullish sentiment all around, but what are the technicals telling us?
The $100 psychological level is $10 away now. It also coincides with the 61% FIb retracement, which generally attracts the price. If you look on the chart below, there is a series of low-volume nodes just above the current price, which could send CL higher quickly due to the lack of liquidity. This might accelerate the price toward $100.
The RSI is currently overbought, however, and the chart would appear as if it requires a pullback. At the moment, we can monitor price as it approaches the 50 Fib level at $94 and then wait to see if a potential pullback arises.
There are currently no bearish signals that I see on the chart. Trading CL now can be done by switching to lower time frames and buying pullbacks for either short-term gains, or holding to a larger move to $100.