Crude Oil Corrected – The Fight With The $100 Mark Has Begun

Crude Oil Prices

At the beginning of March, crude oil rose to over $120. At that time, chartists could proclaim a somewhat utopian target of $300 per barrel. Since then, black gold has been correcting and has fallen back below $100. All in all, however, it could soon go up again – at least to the high for the year at over $120 per barrel.

Below you can see the weekly chart from 2013 to present with the short-term breakout above the resistance zone just mentioned. Also inserted as a horizontal blue line is the round resistance at exactly $100. Round marks are important because very many investors and traders place buy and sell orders there.

Crude Oil WTI
Source: www.taipan.de

Also drawn in is an inverted head-and-shoulders formation. The neckline had already been crossed when the energy commodity rose above $75 per dollar. So, in the long term, it could go to a new historical high.

Crude Oil Isn’t as Overbought Anymore

At the beginning of March, crude oil was in the overbought zone. With the correction of over $25, this condition was dismantled. A bottom seems to be forming. The chart below shows a seasonal forecast line for the complete year, using more than 30 years of price data. 

I have marked with two yellow dots the next time periods in which crude oil can move strongly upwards. This period begins on April 27 and ends just under a month later on May 21. After that, crude oil should move sideways again until August, before possibly the next upward push.

Crude Oil WTI

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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