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Crude Oil About To Test 13-Year Resistance Level

ByChris Kimble
Published 02/08/2021, 10:29 AM
Updated 07/09/2023, 06:31 AM

Crude Oil Monthly Chart.

Key highs and lows in crude oil have been important to stocks more than once over the past 20 years.

What crude oil does in the near future should influence stocks again.

Crude oil since its peak back in 2008, has created a series of lower highs and lower lows inside of falling channel (1). It hit the bottom of its falling channel in April of last year, where it made a massive bullish reversal pattern. Since that low crude oil and stocks have experienced large rallies.

The rally has crude oil nearing a 13-year falling channel resistance and its 2019 highs at the $63 level.

 

What crude oil does at this resistance zone should send a very important message to stocks and commodities.

If crude oil succeeds in breaking out at (2), look for it to rally up to the $80 level.

 

Latest comments

Your chart is not realistic.  I seriously doubt anyone was paid $40 per barrel to take it out of the "sellers" hands.  $20 was more like the realistic low.  I wonder how many people went long once Biden was elected.  Oil may be a good inflation hedge if dollars hyper inflate.
That low channel mark at negative $40 was a fluke.  Was there any individual or firm paid to take a barrel of oil at $40?  Take it off my hands, I pay you $40 plus the barrel of oil just to take it?  Ignoring that one day puts the low at about $20 per barrel.  Other than that, point taken.  Thank to Biden oil is going up.  I wonder how many American democrats went long on oil after the election?  Could oil be a good inflation hedge?
Evem though crude oil “lived” in the $60 range or lower, oil stocks themselves traded higher than they are now.
hi
please tell me a fundamental reason for crude oil to reach 80$!.. Maybe gamestop community starts playing with crude. lol
Expected inflation of dollars and far less crude production in U.S.
Definitely.
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