Crude Oil had a rocky summer. After making a high at the start of the season, it quickly pulled back. The price stalled at what has been an important price level this year, 66.50, and then continued lower. By early August it had hit its 200 day SMA. This was the first touch at the 200 day SMA since October 2017. That is where it bottomed.
The chart below shows bottom, at a higher low than the June bottom, and reversal. It has moved higher since and was having trouble breaking above resistance at 71. On the third push, it broke higher on Wednesday. Will it continue? The chart suggests it quite well could.
Momentum is building and already positive. The RSI is knocking on the door of a move over 60 and the MACD is positive and rising. The Bollinger Bands® are also squeezed, often a precursor to a move, and now starting to open higher. It has turned higher in pre-market trading Friday and now has its next resistance over 71 at 72.80. A break there sees only the June high in the way of a move to the 80’s.
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