Crude Oil Price Forecast: Multiple Bullish Patterns Support Breakout Case – ForexNews.PRO
Crude oil continues to push up against a resistance zone around a prior long-term support level from May 2023. The price was $63.67 from a spike low. Notice the highs of each day this week were slightly above that price level, but the daily closing prices were below it.
Moreover, the rally following a second low in early May also found resistance around the 2023 support level.
Consolidation Continues Above 50-Day MA
On Thursday, gold again consolidated within a relatively tight range around support of the 50-Day MA. That line was reclaimed on Monday and gold closed above the 50-Day line each day this week. That is a sign of strength, indicating the potential for an upside continuation. However, a signal is needed and that would be provided by a decisive rally above this week’s high of $64.22. Subsequently, a new bullish continuation signal would be generated on a rally above an initial swing high of $64.67 (B) from May 19.
Bull Breakout on Weekly
A bull breakout on the weekly chart triggered on Monday as last week’s high of $53.43 was exceeded. The breakout was confirmed on a daily basis and it will be confirmed on a weekly basis if Friday’s closing price is above that higher. That would be another bullish sign, and on the more significant longer time frame. A confirmed weekly breakout would put crude oil in a good position to challenge the May swing high.
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