Crude Oil Technical Forecast:
- WTI oil has room for further growth
- There is significant long-term resistance around the 77 mark.
WTI Crude Oil Forecast – 10% Growth Opportunity Pending Large Long-Term Level
WTI oil is maintaining a steady uptrend, having recently found some pullback from the sticky resistance area. The peaks of 2019, 2020 and March of this year were holding back further price increases, but this was reflected in the rearview mirror.
The area around 65/66 will be seen as a source of significant support on any decline, now that it has cleared. As long as this persists, the bias will be bullish in the short to medium term.
Looking to the left of the chart, there will be no significant resistance, starting at nearly 10% above current levels, with the 2018 peak at 76.72 in the spotlight. This high came at an important time as it was reached at the 2011 lows when a bottom pair between ~ 75 and 80 was created this year. We can include the 2012 low at 81.03 in the mix as part of this resistance zone. With this in mind, the resistance zone runs from 76.72 to 81.03.
Breaking through this decade-long zone of resistance can be daunting on the first try. Just as we saw oil suddenly drop from the 2019/20 peaks in March, we can again see it happening in an even larger area of resistance.
But as long as oil is in outer space, it retains the potential that it can continue to grow with limited setbacks. But then again, even if we see a pullback from here, given the overall uptrend and support not too far below, the dip may simply offer traders another opportunity to enter the bullish market trend. A significant shift would be required to change the outlook from broadly bullish to bearish.
Daily chart of WTI crude oil
WTI Crude Oil Weekly Chart
Crude Oil Charts by TradingView
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— Written by Paul Robinson, Market Analyst
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