It’s been an impressive start to the year for Crude Oil prices so far, with prices steadily rising to over $50 per barrel and returning to pre-pandemic levels. It would seem many underestimated such a speedy recovery.
Still, with the general uptick in global commodity prices and a pledge from Saudi Arabia to cut production heavily over the next year, Crude Oil has benefited significantly, and today we’re looking more at short-term levels using the hourly chart above.
First, we have a validated bullish trendline that emerged on January 5th and continues to provide adequate price support for Crude Oil. This trend’s strength appears fairly robust following a barrage of tests over the most recent trading sessions.
In terms of potential targets, the chart shows some DiNapoli levels T1 & T2 calculated from the following price points (49.46 / 51.26 / 50.42) and (50.42 / 52.72 / 51.49). Since the first price target reached on the 8th, the focus now will be T2, which is $53.79 a barrel.
Perhaps we may see a further re-test of the current trendline as support before advancing to the higher levels. However, should this region succumb to downward selling pressure, the areas of $51.49 and $49.80 could become alternative levels to consider for levels of demand/support.
Note: Click on charts to enlarge.
By Adam Taylor CTEe
Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg
Disclaimer: The articles are from GO Markets analysts, based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own; should not be taken as either representative of or shared by GO Markets. Advice (if any), are of a ‘general’ nature and not based on your personal objectives, financial situation or needs. You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.
Proud partner of Chelsea Football Club Find out more