Crude Oil: Resistance is Holding Strong
Rowan Crosby • 1 min read
Volatility remains high in Crude Oil at the moment. On Tuesday there were a few developments that made for an interesting session.
Stock markets started the day looking strongly before turning south and dragging oil markets down with it. While the USD ultimately pushed higher which was another bearish play.
The final nail in the coffin came by way of API inventory data which showed a larger build than expected.
This added up to a weak oil market, after what has been a strong run to this point.
Resistance is Strong
Much has been said about resistance overhead holding up. My take is that we were always going to test this level. After a strong directional move, it was clear that 66.00 was always going to be the first port-of-call.
Now that we are here we still need to break out if we are going to get any more momentum.
I’ve been looking for a move to near the 67.00 mark and a pullback before getting long. Below that, I suspect we will see some consolidation and even downside.
70.00 is my top for the year and I wouldn’t be surprised if we do breakout and get there.
Crude Oil – 240 min Chart.