The outlook for crude oil continues to improve as the recovery momentum initiated from its 2010 low of $69.69 continues to move higher.
The commodity came off its intra-day low at $76.71 to rally through the $78.01 level, its Feb. 3, 2010 high, and test as high as $79.42 in Thursday's trading session. It now requires a decisive break and hold above the $79.43 level, its Jan. 19, 2010 high, and the $80.72 level, its Jan. 14, 2010 high, to create further upside scope towards its year-to-date high at $83.93.
We cannot rule out corrective pullbacks as the journey to recapture its key resistance at the $83.93 level is now shaping up. If corrective dips are triggered, its Feb. 3, 2010 high at $76.09 will be targeted at first where a clean penetration and negation will set the stage for further weakness towards its Feb. 11, 2010 high at $76.09 and its rising long-term trend-line support currently at $75.82.
We expect these levels to hold and turn crude back up again in line with its nearer term uptrend. On the whole, the technical outlook for crude oil has improved following its recovery momentum from the $69.69 level and now looks to build more on that strength with eyes on the $83.93 level.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.