Crude oil futures have rebounded off psychological support after a steep decline from the March highs. Technical support and resistance continue to threaten the imminent move.
Crude Oil Forecast â Keep an Eye on Channel as Correction Risk Rises 2021-03-11 14:00:00 Paul Robinson, Strategist
Crude Oil Technical Outlook:
Up over 100% since November, correction may be due
Upward channel an important guide to watch Advertisement
Crude Oil Forecast – Keep an Eye on Channel as Correction Risk Rises
WTI crude oil continues to rise within the confines a somewhat loose but steady channel. It is currently trading up against the 2019 and 2020 highs. This could prove to be a pivotal spot at a time when oil is up significantly without having had a meaningful correction.
The reversal the other day was powerful and indicates that sellers are in the area of the 2019/20 highs. The smallish bounce the past couple of days could turn into a failed attempt to advance, with potential to carve out a lower-high.
WTI crude oil continues to rally within channel formation May be in for a pullback/consolidation, using channel as guide Advertisement WTI crude oil remains in bullish channel
WTI crude oil is on the extended side, but remains within the confines of a well-defined channel structure that keeps it pointed higher. With that in mind, we may see a pullback develop here soon that will alleviate any short-term overbought conditions that exist, but the outlook is generally bullish.
A pullback to the lower trend-line could offer would-be longs an opportunity to enter and have a threshold from which to assess risk. Stay above the lower parallel and the current trend remains intact. Break below and a larger decline may ensue.