By observing the weekly chart, it can be easily deduced that crude oil has advanced gradually since February 2008. The commodity has almost tripled in value from $33 a barrel to its current level of $92 in less than 2 years. At the moment, technical analysis is showing us that crude oil is testing a very strong resistance level. If it successfully reaches this level, crude may reach $100 a barrel before the end of the week.
• The chart below is the crude oil 1-week chart by ForexYard.
• It can be seen that a gradual bullish trend has taken place since February 2008.
• Crude oil saw four different bullish channels during that period of time.
• The first bullish channel was blocked at the $75.00 level, after crude climbed from $33.50 a barrel.
• The second bullish channel was blocked at the $82.60 level, after crude climbed from $65.30 a barrel.
• The third bullish channel was blocked at the $87.00 level, after crude climbed from $69.30 a barrel.
• The fourth bullish channel is still taking place. The channel was formed at the $73.40 level, and crude oil is currently trading near the $92.10 level.
• Over the past month, crude saw five consecutive failed attempts to test the $92.60 resistance level.
• As the MACD continues to provide bullish signals, crude oil might see another attempt to cross the $92.60 level today.
• If crude oil will manage to breach trough the resistance level, a new bullish channel is likely to take place – with potential to reach as high as $100 a barrel.
• The next resistance levels are located at: $92.60, $93.00 and $94.50.
• The next support level are at: $91.30, $90.70 and $90.00
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Yan Petters is a top analyst of market trends who specializes in the forex market. Yan has a reputation for composing highly accurate analytical reports, both technical and fundamental. Yan Petters' ground-breaking perspectives on currency trends are highly valued by his colleagues and clients and has been a featured author on a number of influential trading sites. Yan Petters is an author for the ForexYard blog
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