Crude Oil Breaks Out of the Sideways Range – Potential Bullish Waves Ahead
Arslan Butt • 1 min read
For quite a long while, WTI crude oil maintained a sideways channel with a lower range of $55 and an upper range of $58. The range got finally got violated on the weekly timeframe. It’s one of the signs that investors are trading crude oil with a bullish bias.
Before we move towards technical levels, let us recall that the oil prices are supported by supply cuts led by producer group OPEC and non-OPEC Russia. Besides that, the US sanctions against Iran and Venezuela are also underpinning the commodity.
On the other hand, there’s one sector of investors keeping the oil prices bearish over sentiments that an economic downturn may dent fuel consumption in the future. Therefore, they are pricing in the sentiment.
Key Trading Level: 58.63
On the technical front, crude oil price is steady outside the sideways channel with immediate support around $58. Crude oil can continue trading bullish above this level with an immediate target of around $58.85 and $59.45. On the lower side, oil can stay bearish below $57 and $56.60.