Crude Weekly Chart
Technical Outlook: Crude oil prices broke above channel resistance last month with the rally turning at former trendline support extending off the April 2016 low last week. The focus is on this pullback in price with confluence support eyed 47.43. Key resistance remains at 54-55.
Crude Daily Chart
Notes: A closer look at price action shows crude prices trading within the confines of a near-term ascending pitchfork formation extending off the yearly lows. Note that the lower parallel converges on the 200-day moving average and former trendline resistance extending off the yearly high around ~49.30/50. A break below that level would be needed to suggest a larger pullback is underway with such a scenario targeting 47.43/70– a region defined by the 50% retracement of the June advance, basic trendline support and the 100-day moving average.
A breach above last week’s highs targets subsequent resistance objectives at 53.94 backed by 54.74-55. Bottom line: prices remain vulnerable near-term for a test of slope support just lower- look for a reaction there with the broader focus still higher while above yearly trendline support.