Crude Oil Breaks Through a Pivotal Resistance

US crude oil prices reversed the bearish correction tendency as we expected during the previous analysis, continuing to achieve gains, and recorded the highest level at 68.52.

Technically, oil’s movements are witnessing stability above the previously breached resistance-into-support at 67.50/67.40, according to the concept of exchanging roles, in addition to the positive stimulus coming from the 50-day moving average.

From here, the bullish bias is likely today, targeting 69.00/69.20 Fibonacci retracement of 50.0% as shown on the chart, next station. Note that oil’s attempts to breach 69.25 increase and accelerate the strength of the bullish trend towards 69.70.

Only from below, trading stability returns below 67.50/67.40, the 61.80% correction that will immediately stop the bullish trend and put the price under negative pressure targeting 66.45. 

Note: the level of risk is high.

S1: 67.65	R1: 69.25
S2: 66.45	R2: 69.70
S3: 66.00	R3: 70.10