U.S. Crude Oil Test of Major Resistance Coming

U.S Crude Oil has been able to achieve new short-term highs and is testing important resistance. The commodity is near 56.00 U.S Dollars a barrel entering trading this week and will be tested by speculators and will be watched by global investors.

U.S. Crude Oil Attains New Short-Term Highs

U.S Crude Oil has attained new highs the past week and opens trading today within an important testing ground.

U.S Crude Oil is at 56.00 U.S Dollars a barrel and will be watched by not only commodity speculators but broad market investors too. Crude Oil has not been pushed backward since mid-October and its momentum is intriguing.

Trend Upwards Testing Traders

Support for U.S Crude Oil appears to be around 52.00 U.S Dollars a barrel. However, support around the 52.00 dollars juncture would be a large and painful fall for most traders.

A look at the mid-term shows the commodity’s trend upwards, and the higher range it is now testing as it attempts to make resistance crumble.

Consolidated Range Crumbling?

Economic data has improved globally and this is helping spur speculative buying in U.S Crude Oil, but a look at a long-term chart shows the inherent danger of its consolidated range the past year and a half.

The question is if U.S Crude Oil is ready to break through what has proven very strong resistance. If the commodity is able to go higher it could traverse values near 60.00 U.S Dollars a barrel, but traders need to be prepared for a fight.

In the short term, we believe U.S Crude Oil may be positive. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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