WTI crude oil was approaching key resistance
WTI crude oil futures are trading higher by about $0.84 or 0.99% at $81.40. The high price today has reached $81.72. That took the price to the highest level since April 17.
Looking at the daily chart, the price moved above its 200-day moving average last Monday (July 24). Since then, the price has continued its march to the upside with 4 of the last 5 days higher. The price is also working on its 7th day to the upside out of the last 8 trading days.
Continued momentum is targeting a KEY swing ceiling area going back to November 18 (see yellow area and red numbered circles).
Looking at the daily chart there are a number of swing highs between $82.48 and $83.44 over that time period, with the last highs within that area from April 12 to April 17.
That ceiling area is a key target and will be a key barometer for both buyers and sellers. Moving above the area would be more bullish. Staying below would keep the ceiling in place.
On the downside, watch the $79.00 for short-term clues. Move below that level (see green numbered circles on the chart above), and there could be a further corrective move toward the 200-day MA
WTI is having its best month since January 2022 (up 15.23%). The buyers are in control, but be aware of the key resistance above.