Crude Oil tested highs in January and early last week, but was taken lower both times as global equities sold off. Another test of resistance may be developing.
U.S Crude Oil in Middle of its Range
U.S Crude Oil has posed a difficult test the past few weeks. The commodity opens trading today above 64.00 U.S Dollar per barrel, but has come off highs and is in the middle of its range.
While short-term support looks to be about 63.00 Dollars, resistance appears robust around 66.00 U.S Dollars. The Crude Oil market was closed on Friday because of the holiday in the States, and traders should be ready for fast action as the Americans step into the energy sector again today.
Bullish Behavior About to Return to the Broad Markets?
A look at a long-term chart shows U.S Crude Oil failed in January to break above the 66.00 level, and faltered again last week to break resistance. However, this occurred both times when the broad markets suffered strong selloffs in global equities.
If global equities find bullish behavior today and tomorrow, U.S Crude Oil could react with another push higher and once again challenge high water levels with speculative fever.
In the short term, we believe the Crude Oil could be positive. The mid-term and Long term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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