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Friday, 07 May 2021 06:28 GMT

Crude Oil Price Outlook: Fresh Highs in Focus Post-Breakout


(MENAFN - DailyFX) CRUDE OIL PRICES PUSH TOWARD YEAR-TO-DATE HIGHS FOLLOWING RANGE BREAK

  • Crude oil price action has surged 7% higher so far this week as bulls wrestle back control
  • Topside breakout above technical resistance opens the door to fresh year-to-date highs
  • Fundamental outlook for crude oil remains constructive and could propel the commodity
  • Sharpen your technical analysis , learn about WTI vs Brent , or review this oil trading guide

Crude oil bulls look to have regained control of price action after sending the commodity 7% higher so far this week. Oil prices now trade comfortably above prior resistance posed by the $62.00-handle with robust economic data likely helping fuel the move. This brings to focus potential for crude oil prices to continue its rebound back toward year-to-date highs.



CRUDE OIL PRICE CHART: DAILY TIME FRAME (24 DEC 2020 TO 15 APR 2021)

Chart by @RichDvorakFX created using TradingView

Crude oil price action breaking out above $62.00/bbl coincided with a bullish MACD crossover and upswing in the relative strength index . This followed a breakout from an apparent falling wedge pattern , which are often formed during periods of consolidation. The upper Bollinger Band stands out as a nearside technical obstacle that might keep crude oil prices relatively contained.

Momentum behind the latest extension higher seems to have intensified and accelerated crude oil price volatility , however. This could lead to a Bollinger Band expansion, and statistically speaking, correspond with improved upside potential that facilitates higher crude oil prices. On the other hand, if crude oil bears attempt to make a push, the commodity could find buoyancy around its 50-day simple moving average .

Keep Reading 8 Surprising Crude Oil Facts Every Trader Should Know

-- Written by Rich Dvorak , Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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