One of the lead stories of the day has been the bullish breakout in crude oil. Prices of the June WTI futures contract have rallied above the key level of $65.00, driving north to an intraday high just beneath $66.00. It appears that a test of $70.00 may be on the way by Friday’s closing bell.
Psychological levels certainly have a way of drawing participation to the market. Once price broke the $65.00 handle, a rush of bids hit WTI, producing a strong and rapid uptrend. Since that time, buyers have held their ground above $65.50. Media outlets are reporting that the U.S. is preparing to end sanction waivers for countries that import oil from Iran. This may prove to be a supply disrupter and has been one reason for the bullish breakout in today’s oil markets.
June WTI Crude Oil Futures: Technical Outlook
$64.00-$65.00 proved to be an area of formidable compression for June WTI crude oil. Price rotated in this vicinity for nearly two weeks before finally continuing the bullish action of 2019.
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Overview: Until proven otherwise, it is long-or-nothing for WTI crude oil. It will be a surprise if the $65.00 handle doesn’t come back into play this week, but current price action is decisively bullish.
With the peak demand summer season rapidly approaching, June WTI futures appear destined to hit $70.00 or $75.00 in the coming six week period.
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