Crude Oil Technical Analysis – We got a key breakout recently

Fundamental
Overview

Crude oil managed to eventually
break above the key $80 resistance as the market has finally started to catch
up to positive drivers. In fact, we got the recent OPEC+’s extension of
voluntary output cuts, and we are seeing a pickup in economic
activity as the US
PMIs showed once again last Friday.

We have also some major
central banks beginning to ease their policies and China will likely continue
to do so as deflationary forces remain present. This should support the demand
outlook in the big picture.

Crude Oil
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that crude oil managed to break above the key resistance around the 80 level and
consolidated ever since. The buyers will keep on piling in around these levels
with a defined risk below to position for a rally into the 84.50 level next.

The sellers, on the other
hand, will want to see the price falling back below the 80 zone to regain some
control and target a drop into the 77 level.

Crude Oil Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see more clearly the consolidation right above the key resistance
now turned support. We had a very strong run from the lows around the 72.50
level, so a little bit of consolidation is normal.

There’s not much else we can
glean from this chart as the buyers will keep leaning on the support zone while
the sellers will wait for a break lower to pile in with more conviction.

Crude Oil Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see that we have a range between the 80 support and the 81.80 resistance. For
now, the market participants will likely keep “playing the range” but a
breakout on either side should see the momentum picking up steam. The red lines
define the average daily range for today.

Upcoming
Catalysts

Tomorrow we get the latest US Jobless Claims figures, while on Friday we
conclude the week with the US PCE.