Crude oil is currently trying to break to the upside as it is currently trading above the $67 level. Will the black gold continue higher? The following technical analysis explains.
30 October, ADS Securities – Crude oil prices are seeing some strength in the week's early trading, with WTI trading above the $67 level as the energy market attempts to continue its bullish recovery after several days of weakness caused by the global selloff in equity markets.
Despite the bearish selling pressure keeping prices below $68, the overall market sentiment remains cautious as traders focus on the US sanctions on Iran.
However, the relief for oil is likely to be seen from ever-rising US production, with the EIA's output count currently adding 11 million barrels per day.
Crude Oil Price Technical Analysis
Prices have been steadily declining for nearly four weeks, peaking at $77.00 in early October and tumbling steadily ever since. Crude oil is currently trying to break to the upside, settling above the $67 level but failing to break above $68 per barrel.
The momentum on the RSI is printing higher highs and higher lows just as the price, pointing towards a build up in the momentum so the next level we will be watching is the $68.4 resistance level.
Support: 67.00 / 66.77
Resistance: 68.39 / 69.50
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