Crude Oil futures look to be breaking to the upside as the year draws to a close. After spending much of the past six months in range-bound movement, /CL is up around 40% since November lows. The contract crossed above many commonly followed moving averages during this sharp rise, including the 200-Day Simple Moving Average and 252-Day Exponential Moving Average.
An even more significant development is the 252-Day EMA itself recently began rising after trending downward for practically the entire year. The bullish push reflected in these indicators could suggest the beginning of a trend shift, as the longer-term averages tend to have greater significance for technicians.
In terms of momentum, the RSI moved into the overbought area yesterday and continues making new highs in tandem with price, which is typically regarded as bullish. Upside levels to watch include the area near 50, as it represents the low before the major gap down in March, and the yearly Linear Regression 50% Channel upper line near 50.80. Be on the lookout for a support zone between the 21-Day EMA near 45.60 and the 252-Day EMA near 45.10.
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