Oil maintainsa positive outlook in 2022, but its overbought condition and price's proximity to key technical resistancemay pave the way for a brief pullback before the next leg higher.
Oil maintains a medium-term bullish outlook, but its overbought condition and price's proximity to key technical resistance may pave the way for a brief pullback before the next leg higher.
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WTI Crude Oil Technical Outlook: Oil Gears Up at Critical Resistance
2021-05-01 15:00:00
James Stanley,
Senior Strategist
WTI Crude Oil Technical Forecast: Bullish
Crude oil prices came into the week with a bull pennant and buyers took care of the matter in short order, helped along by the FOMC rate decision on Wednesday.
Oil prices are now testing a critical zone of resistance that’s shown rejections and false breakouts for each of the past three years. Why might this iteration be different? Read more below.
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It was another strong week for Oil prices, with WTI pushing up for a re-test of a key zone of resistance. Demand continues to do most of the driving but, as we’ve been looking at over the past month, the technical backdrop has become a hindrance to bulls as a zone of Fibonacci levels have come into play to help hold the highs.