Crude Oil Price Forecast: Bullish Breakout Signals Trend Continuation

Author: Bruce Powers

Published: February 19, 2026

Overview

WTI crude oil has recently broken out of a pennant pattern, indicating a continuation of its bullish momentum. The price reached $66.90, marking its highest level since early August, and this breakout has generated a bullish outside week, suggesting strong buying interest.

Pennant Breakout and Trend Continuation

The breakout occurred after WTI crude oil traded below the 200-day moving average for several months. The recent price action indicates a recovery from an intermediate downtrend that began in January, with the current consolidation phase being the longest since that downtrend started. The breakout above the pennant formation, which formed near the 200-day average, is significant as it suggests the potential for a sustained bullish trend.

Key Resistance Levels

Key resistance levels have been identified, with the most critical being the lower swing high at $71.33, which marks the top of the downtrend that is now being reversed. The day’s high of $66.90 also tested a long-term downtrend line and a 50% retracement level, indicating that a breakout could be imminent. An interim lower swing high at $66.77 will serve as another bullish reversal signal if closed above.

Upside Targets

The primary upside target for crude oil is set at $71.33. However, a measured move from the recent low of $55.00 suggests that the price could eventually challenge the previous high of $78.44. This aligns with the historical price movements observed in 2025, where a similar advance occurred from the $55.00 low.

Conclusion

A weekly close above the previous high of $66.57 will confirm the bullish trend continuation, positioning crude oil for potential higher prices in the near future. Traders are advised to monitor these key levels closely as they could dictate the market's direction moving forward.

About the Author

Bruce Powers is a seasoned finance professional with over 20 years of experience in financial markets. He holds an MBA and is a CMT® charter holder, having served as head of trading strategy at hedge funds and as a corporate advisor for trading firms.