Crude Oil: Breaks Resistance

US crude oil futures prices achieved a remarkable rise, clearing the negative outlook, as we expected, in which we depended on stability below 52.70, explaining that any trading above the aforementioned and most important level above 53.10 is able to cancel the bearish scenario, to record its highest level during the Asian session for the current session at 53.37.

Technically, the current moves are witnessing stability above the previously breached resistance level converted to the 52.70 support level, accompanied by the RSI getting positive signs. Therefore, the bullish bias is likely today, targeting 53.75 as a first target, bearing in mind that confirming the breach of 53.75 will extend oil’s gains so that we await 54.00 / 54.20 for a next official stop.

The suggested scenario requires stability above 52.70, and breaking it is capable of negates the bullish attempts, and we return to the descending path again with the first goal of 51.70.

Note: The speech of US President-elect “Joe Biden” is due today and that may have a significant impact on the market movement.

S1: 52.40	R1: 53.75
S2: 51.60	R2: 54.20
S3: 51.05	R3: 55.10