Oil Bullish Bias After Breaching The Resistance

US crude oil futures prices jumped during the previous trading session, and as we made clear that re-activating long positions requires a clear and strong break of the 40.25 resistance level, which enhances the chances of a rally towards 41.00 / 40.90 and then 41.40 as a next stop to reach its highest level at 41.38.

Technically, with the price breaking the descending channel’s resistance level, as seen on the chart, with the 50-day moving average supporting the bullish bias, therefore the bullish trend will be likely today, targeting 41.70 as a first target, followed by 42.40, and the gains may extend towards 43.00. A reminder that activating the aforementioned scenario requires an intraday stability above 40.60, and the most important 40.20.