Can WTI Oil Break Resistance to Surge Another 20%?

By Admiral Markets

The price of West Texas Intermediate (WTI) oil, an international benchmark, has continued to range around the ~$65.00 price level for the past few weeks.

The price level is in fact a strong horizontal resistance level where the price has struggled to break through on several other occasions, including in April 2019, January 2020 and March 2021, as shown in the chart below.

Many analysts point to the fact that the context of the oil market is very different to previous years. As economies open, the demand for oil has increased, which has helped to fuel a huge rally higher, since the lows of the pandemic last year.

Source: Admirals MetaTrader 5, CRUDOIL, Weekly – Data range: from Aug 5, 2012, to May 11, 2021, performed on May 11, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

The technical picture also shows a more positive outlook, as the previous interactions with the ~$65.00 price level resulted in a significant move lower – a move that has not happened yet.

If the price can break through this resistance level, then there could be a near 20% rally higher to the next level of resistance around the ~$77.00 price level, which is a multi-year high.

Did you know that you can use the Trading Central Technical Ideas Lookup indicator to find actionable trading ideas on Amazon’s share price and thousands of other instruments across Forex, stocks, indices, commodities and more?

You can get this indicator completely FREE by upgrading your MetaTrader 5 trading platform provided by Admirals (formerly Admiral Markets) to the exclusive Supreme Edition!

Start your free download by clicking on the banner below:

INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:

1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
4. The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal estimations.
5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.

By Admiral Markets