Crude Oil prices have been operating like an offense that’s consistently trying to set up the play-action pass. On two separate occasions, Crude Oil was on the brink of a deeper correction, clinging to the key $92 support level. Each time, Oil prices found a way to turn things around and rally. By the same token, Oil seemed like it was ready to break out in late December, only to fail at $100.
Well, Crude Oil is back at $100 and appears poised to move higher once again. But will it follow through this time? Well, seasonality is on it’s side short-term; according to Signal Financial Group, Crude Oil seasonality kicks in during February. That said, the price action will guide you. A break above $100 should open up the gates for a retest of multi-year resistance around $110-$115. See charts below. Note that neither the daily nor the weekly chart are currently overbought (although the daily may need a rest soon).
Crude Oil Price Chart – Weekly
Crude Oil Price Chart – Daily
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