Crude Oil Set To Rally Past $100 Price Level?

crude oilCrude 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_February

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Crude Oil Price Chart – Daily

crude oil rally chart_2014

No positions in any mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.