The Crude oil market, on the D1 time frame, was in a short downtrend until the 2nd of November when a lower bottom was reached at 33.78. Bulls found the price attractive and demand began overcoming supply.
After the lower bottom at 33.78, the price crossed upwards through both the 15 and 34 Simple Moving Averages and the Momentum Oscillator crossed the zero baseline into bullish territory. This was a warning to technical traders that a possible trend change might be in progress.
A higher top and critical resistance level was formed on the 11th of November at 43.24 when bears came to the immediate defence, trying to take the price lower again. They failed and on the 13th of November a higher bottom was formed at 40.30 as bulls started re-capturing the market again.
On the 23rd of November the Crude oil market breached the critical resistance level at 43.24 and three possible price targets can be calculated from there. Applying the Fibonacci tool to the top of the resistance level at 43.24 and dragging it to the previous higher bottom at 40.30, the following targets can be considered. The first target may be projected at 45.06 (161 %). The second price target might be likely at 48.00 (261.8%) and the third and final target can be expected at 52.75 (423.6%) if the uptrend continues making higher top and bottoms.
If the higher bottom at 40.30 is breached, the bullish scenario above is invalidated and traders might consider protecting their accounts.
As long as positive sentiment remains and demand overwhelms supply, the outlook for the Crude oil market on the Daily time frame will remain bullish.
For more information, please visit: FXTM
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