Crude Oil Maintains Strength Above Key Moving Average

Crude oil continues to demonstrate resilience, maintaining its position above the crucial 200-Day Moving Average (MA). Recent market patterns indicate a potential upward trajectory, particularly if the resistance level at $76.29 is surpassed.

Crude oil has exhibited strong demand dynamics. A notable pullback occurred yesterday, where prices found support at the 200-Day MA before bouncing back. This moving average previously acted as resistance on two occasions last week, but its successful retest as support suggests that the upward trend may soon resume.

Today, buyers regained control, establishing a higher daily low, with the closing price expected to settle in the upper third of the trading range. Additionally, crude oil is poised to conclude Tuesday’s trading session at its highest daily close since early February.

The recent rally also showcased strength through a bullish reversal signal triggered above the lower swing high at $72.49 last Friday. This breakout was confirmed by a daily close exceeding that level, and today’s closing price above it will further reinforce this strength. Furthermore, a significant downward trend line was breached over the past few days, with today’s closing price expected to validate this breakout. These movements underscore the persistent demand for crude oil.

Looking ahead, a breakout above last week’s high of $76.29 is anticipated before any substantial pullback. Should this occur, the lower swing high at $80.76 will become the next target for upward movement.

The 200-Day MA is a critical support level in the near term for crude oil. As long as prices remain above this line, the possibility of a new high breakout stays alive. Currently, the market is exhibiting a double inside day pattern, indicating reduced volatility as the trend pauses to consolidate gains. Such formations often precede bullish continuation signals. However, given the broad trading ranges experienced in recent days, a breakout above $76.29 could trigger a fresh surge in volatility.