Crude Oil Price Forecast: Rallies to Seven-Day High as Demand Strengthens

Crude Oil Tests Double Bottom Breakout

Crude oil made an initial attempt to break out from a small double bottom bullish reversal pattern on Thursday, reaching a high of $64.43. A breakout above a short downtrend line triggered early in the session, showing strength, followed by a move above the pattern’s neckline at $64.18. However, the bullish breakout is not confirmed until there is a daily close above the neckline.

The day’s high marked a seven-day high, and crude is on track to finish near the highest daily close in eight days. If it closes above $64.32, it will represent the highest close in nine days, signaling further short-term bullish momentum.

Short-Term Strength and Key Resistance

Demand remains strong as trading continues near the highs of the day, suggesting the session high could still be extended. Thursday’s long-range green candle and likely close near session highs set the stage for a potential confirmation of the double bottom breakout. If confirmed, the next area of resistance comes into focus around the 20-Day moving average at $65.41.

This zone is reinforced by a large double bottom neckline, prior support and resistance near $65.32, and an anchored volume-weighted average price (AVWAP) calculated from the April trend low. Together, these levels form a potential resistance zone ranging roughly from $65.02 to $65.41.

Weekly and Longer-Term Outlook

Last week’s high at $64.77 was another key level. A sustained move above it would trigger a bullish reversal on the weekly chart, opening the door to further strength. Should momentum continue, a rally above $65.52 would position crude oil to test higher price levels, including the 50-Day moving average at $67.46 and the 200-Day moving average at $67.94.

Conclusion

Crude oil is showing signs of strengthening demand and short-term bullish momentum, but the double bottom breakout remains conditional on a daily close above $64.18 and the upside may be limited. Confirmation of the pattern would target the 20-Day moving average and potentially higher resistance levels, setting the stage for further upside in the days ahead.

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