Crude Oil Price Forecast: Third Test at 20-Day Support Holds – ForexNews.PRO
Crude oil spent a third consecutive day on Thursday successfully testing support at the 20-day average. Today’s low of $59.96 landed right near both the 20-day line and the 10-day average at $60.08, which is now rising and on the verge of crossing above the 20-day — a fresh sign of building strength. While the pattern of lower daily highs and lower lows persisted, today’s decline was minor, showing buyers are actively defending this key zone.
Weekly Bullish Foundation
Last week delivered a decisive breakout from a small falling channel, forming a powerful weekly bullish engulfing candle that closed near the top of the $56.41-$63.03 range. This strong weekly structure reflects real buyer commitment, and with only one leg up completed so far, the setup strongly favors a second leg higher once the current pullback — now in progress — finds a base.
Inside Week Formation
This week has traded entirely within last week’s range, setting up a classic inside week unless prices push above $63.03 before the week ends. A close in the top half of today’s range would form a potential bull hammer right at the confluence of the 10-day and 20-day averages, near the 50% retracement zone — a textbook reversal setup. A rally above today’s high would trigger a daily breakout, with added conviction on a move above Wednesday’s $61.37 high.
Upside Targets Defined
The recent lower swing high at $63.03 (B) stalled at the 50-day average. That line, now at $62.37 and still falling slightly, stands as the first short-term upside target. A clean break above it would open the door to retest $63.03, and if that level gives way, it signals continuation of a measured move starting from today’s low — matching the length of last week’s initial advance, assuming $59.96 holds as the pullback bottom.
Source link
