Oil Prices had another good week, with WTI heading higher for a re-test of a crucial resistance zone. The majority of the driving is still done by demand, but as we’ve seen over the last month, the technical context has become a hindrance to bulls, as a zone of Fibonacci levels has come into play to help keep the highs in place.
After buyers stepped in for another hold of support above the $60 psychological mark, a powerful bullish trend emerged this week. The psychological level is a significant price in the current juxtaposition behind crude, as it contributed to some turbulent price action from mid-March to mid-April. However, buyers have re-entered the 64.31-67.19 range, confirming the near-term pattern.
This is a wide zone with two longer-term Fibonacci ranges that has retained the highs for the past three years, with inflections in 2019, 2020, and 2021. Buyers hit a brick wall in early March, but a trendline forecast predicted the imminent pullback. However, given the strength of support here, there could be an opportunity to plot for more bullish breakouts. Below, we’ll go further into the trendline.