crude oil futures (CL)
Technical Analysis

Oil Bulls Sing As Profits Roll In: Technical Analysis

  • $100 psychological level in focus more than ever.
  • No sign of a bearish reversal at the moment.
  • Traders could ignore short signals on shorter time frames and concentrate on buying dips.

Bulls In Control

Crude Oil continues to surge as small dips are eaten up quickly by powerful buying pressure. The question here is if there is any bearish case, really. It appears that there is none, which is important to note moving forward as CL targets the psychological $100 level. In our last technical analysis, we mentioned that $100 looks like a possible outcome in the near term; read it here.

There is no sign of bearish divergence on the daily chart, and this is currently the second wave we can observe. There is likely to be some sort of selling pressure around $100, and if we see divergence there then that could be the signal to take some profit on longs, but for the time being, we are long up until $100, and from there we become neutral. Traders who refuse to observe the long-term bullish trend could be stopped continuously on shorts and should be careful of this. We have no signal of a bearish reversal at the moment and if we follow the trend on the daily, we can grind down to shorter time frames and ignore shorts, buy dips, and take longs.