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Crude Oil Likely to Rise

May 26, 2022

  • The Crude Oil price continues to trade above $109.00.
  • Bullish trend line has formed support near $108.50.

The Crude Oil, US Dollar price corrected lower after testing resistance near $113.20. XTI/USD then found support near $103.00 before starting a fresh rally.

XTI/USD 4-Hour Chart (Trend: BULLISH)

 

On the 4-hour chart, the XTI/USD price has settled above the $108.00 resistance level, and both the 100-MA (red) and 200-MA (blue). The price also broke above the 50% Fibonacci retracement level of the downward move from the swing high of $113.13 to the swing low of $102.99. The price is currently consolidating near the $109.50 level.

For the price to continue bullish, it will first need to test resistance at $110.00. Above this there is further resistance near $113.20. Further gains could see the price climb up towards the $115.50 level. A break above here could see momentum take the price all the way up towards $118.00.

In contrast, if the price turns bearish, it will first need to test support near $109.00. Below this there is further support near $108.50, which is also close to the key bullish trend line. Further losses could see the price drop down towards the $106.50 level and the 100-MA (red). A break below here could see the price drop down as far as the $102.00 support level.

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