WTI Crude Oil Forecast: Breakout Targets $98–$101 Zone

Channel Break Completes Correction

WTI crude oil remains poised to continue its advance towards the next resistance zone around $98.21 to $99.29. Last week crude oil recovered the downtrend line, which is also the top boundary of a falling channel. A new high for the advance was reached around $95.17, triggering a bullish reversal signal on a move above the lower swing high of $94.34, which helps construct the falling channel.

Notably, the longer-term channel breakout was accompanied by a smaller symmetrical triangle breakout. That should help lead to bullish momentum. Both signals further confirm the completion of the recent bearish correction and continuation of a developing bullish trend.

First Pullback Still Possible

Nonetheless, a rise above resistance at $94.34 needs a daily close above it to confirm the bullish signal. Regardless, the price zone may remain as resistance and lead to the first pullback after the recovery of the downtrend line. Key initial potential support areas include the prior high of $88.64 and the 20-day moving average at $86.85 and rising. Further evidence of strengthening can also be seen by the recent turning up of the 50-day moving average, following a convergence with the 200-day moving average.

Measured Moves Point Higher

An upside target from a measured move shows at $101.21. That is where the second leg up from the July bottom matches the price change in the first leg up. The first leg up was $26.61, and the second leg matches that price distance at $101.21.

If buyers continue to regain control, higher potential targets remain viable. Another upside target is defined by a measured move taken from the March advance and then added to the July low. That leads to a potential upside target near the March spike high of $119.54.

Change in Character

In summary, recent bullish signals show a potentially significant change in character as a bearish correction completes and buyers continue to regain control. This suggests higher volatility where crude oil could eventually reach levels seen earlier this year and possibly higher.