Crude Oil Futures Stretch Toward $90 a Barrel
By Greg Michalowski
Date: 22 hours ago
Current Market Overview
The price of crude oil has seen a significant increase, currently trading at $88.74, marking a sharp rise from the previous settle price of $81.01. This represents a price change of +$7.73, equating to a percent gain of +9.54% for the trading day.
Throughout the trading week, crude oil prices have surged by 32%, the largest increase since 2020. The price has also surpassed the previous high of $87.60 recorded in April 2024, with the year’s low being $55.76 on January 7.
Price Targets and Technical Analysis
Looking at the weekly chart, the next major target for crude oil prices is the 50% midpoint of the decline from the 2022 high, which is set at $92.20. Should prices continue to rise, traders will be eyeing the 2023 high near $95.
However, there are signs of potential resistance. A recent spike pushed prices above the topside channel trendline near $89.70, but the momentum could not be sustained, leading to a quick reversal. As long as prices remain below this level, the potential for a bearish trend remains.
For sellers, a critical point to watch is a move below the lower channel trendline, which would indicate a shift in market sentiment. A break through the 38.2%–50% retracement zone of the recent price leg between $87.29 and $87.84 would further confirm that sellers are gaining traction.
Conclusion
The current bullish momentum in crude oil prices is notable, but traders should remain cautious of potential resistance levels and the implications of a failed breakout. Monitoring key technical levels will be essential for understanding the future direction of crude oil prices.