Crude Oil Weekly Technical Outlook

 Crude Oil Technical Outlook

Crude oil's rally continued last week and reached as high as 109.32. Near term outlook stays bullish and further rise should be seen this week to 110.55/114.83 resistance zone. Break will have larger bullish implications. On the downside, break of 105.11 is needed to indicate short term topping. Otherwise, outlook will stay bullish.

In the bigger picture, price actions from 114.83 are viewed as a triangle consolidation pattern. Current development argues that is might be completed already and the larger up trend from 33.2 is possibly resuming. Break of 110.55 will affirm this case and would target 114.83 and above. Though, a break below 99.01 support will extend the sideway pattern from 114.83 instead.

In the long term picture, crude oil is in a long term consolidation pattern from 147.27, with first wave completed at 33.2. The corrective structure of the rise from 33.2 indicates that it's second wave of the consolidation pattern. While it could make another high above 114.83, we'd anticipate strong resistance ahead of 147.24 to bring reversal for the third leg of the consolidation pattern