($OIL, $WTI) West Texas intermediate (WTI) crude oil futures for October delivery on the New York Mercantile Exchange this week poked to a fresh five-week high of $90.52 a barrel. Crude prices are presently in a five-week, up-trend on the daily bar chart and have rallied by nearly $15.00 a barrel from the August 9 spike low of $76.15.
The crude oil bulls have gained a bit of fresh, upside technical strength this week. The climb in prices from the August low has come amid low volatility and has been "under the radar" of many market watchers. The uneventful price advance in crude suggests the same can continue in the coming weeks. However, the crude oil market bulls will have to produce multiple daily closes above $90.00 per barrel in nearby futures to gain better, upside technical momentum to then suggest prices moving into the mid-$90s a barrel, or even challenging major psychological resistance at the $100.00 level.
There is presently strong trend-line support for nearby crude oil futures at the $85.00 area. A drop in prices below that level would dent bullish enthusiasm and then suggest that crude prices will trade in a range between $80.00 and $90.00 in the near term. Should crude oil futures prices fall below major technical support at the August low of $75.71 (basis nearby futures), which is not likely, then fresh, serious technical damage would be inflicted to suggest prices would trade in a range between $65.00 and $75.00.-J. Wyckoff
The crude oil bulls have gained a bit of fresh, upside technical strength this week. The climb in prices from the August low has come amid low volatility and has been "under the radar" of many market watchers. The uneventful price advance in crude suggests the same can continue in the coming weeks. However, the crude oil market bulls will have to produce multiple daily closes above $90.00 per barrel in nearby futures to gain better, upside technical momentum to then suggest prices moving into the mid-$90s a barrel, or even challenging major psychological resistance at the $100.00 level.
There is presently strong trend-line support for nearby crude oil futures at the $85.00 area. A drop in prices below that level would dent bullish enthusiasm and then suggest that crude prices will trade in a range between $80.00 and $90.00 in the near term. Should crude oil futures prices fall below major technical support at the August low of $75.71 (basis nearby futures), which is not likely, then fresh, serious technical damage would be inflicted to suggest prices would trade in a range between $65.00 and $75.00.-J. Wyckoff
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