Crude Oil Daily – Uptrend in progress

Nigel Frith
Lots of Graphs and Charts next to a fuel nozzle

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.

Crude Daily Price chart

For more information, please visit: FXTM


Nigel Frith

Latest news

Bitcoin Starts to Walk on Shaky Feet
Last November, reeling from the sudden demise of the FTX crypto exchange, Bitcoin lost more than 15% of its value. Read more

Safest Forex Brokers 2023

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 73 % of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Plus500 Logo79 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5

    Forex Fraud Certified Brokers

    OctaFX Logo
    IC Markets Logo
    HYCM Logo
    ATFX Logo
    IQ Option Logo
    Exness Small Logo
    BlackBull Markets Logo
    City Index Logo
    LegacyFX Small Logo
    XM Logo
    Forex.com Logo
    AvaTrade logo
    skilling logo
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.