WTI Crude Oil Bull Trend, Watch These Levels

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Written By: Alejandro Zambrano
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    Summary:
  • Crude oil bulls remain in control, as there are no signs of the US-Iran tensions deescalating. What levels could traders be targeting?

Crude oil bulls remain in control, as there are no signs of the US-Iran tensions deescalating.  In the very short-term, the oil price trend remains bullish above the June 21 low of $56.62, and as long as the price trades above this level there is a risk that WTI crude oil prices continue to drift higher. The next resistance level is the May 30 high of $59.72, and a break to the high could send prices towards the next resistance level located at the $61.34 level. However, I don’t think it will be an easy ascent as crude oil prices are short-term overbought since turning aggressively bullish on June 18 from the $51.48 level, and I suspect bullish breakouts could be hard to trade. Instead, I suspect traders will wait for a pullback to the $57.88 level to obtain a better risk-reward ratio for long positions. A break to the $56.62 level might send prices towards the June 9 high at $54.72.Don’t miss a beat! Follow us on Twitter.

Crude oil prices four-hour chart

Written By: Alejandro Zambrano

Alejandro Zambrano combines extensive professional experience and a pragmatic attitude to trading, building clients’ understanding of the markets and the rationale behind investing. Zambrano was the Chief Market Strategist of the FCA regulated broker, Amana Capital. Prior to that, he was also the Head Analyst at FXCM’s London research desk. Interact with Alex via Twitter at @AlexFX00.

Published by
Written By: Alejandro Zambrano