Market Update: Oil, range resistance beaten but can buyers take the next step?
Hi traders, welcome to a new week. Today oil has caught our attention as buyers continue to trade above the range and outside of the downtrend.
Friday momentum kicked with a strong finish to the week from buyers, price closing 2.46% in the black. Despite the firm finish, the price remained range-bound and below the med downtrend. Signs were good but overall we still saw a stalemate in the short term. Today oil opened higher, buyers clearing the range and moved above the downtrend. Today’s move setting up a new potential break higher. With the range beaten atm, we can see Friday’s low set a second point creating a new uptrend.
Buyers still have the September high to beat but if we can see a break and or close above this point it could be a nice sign that we’re seeing a new extension higher. If we see this rally continue forward, we will look to the $74 area as the next possible level of resistance. For now, it’s all in buyers hands. Can they hold today’s break higher and extend it with a strong close breaking free of 70.77 – 67.62 congestion.
If buyers fail today and we see the price slip back below 70.05. We could see the current consolidation continue.