Thursday's Market Minute: Crude Oil Soaring In 2022, But Are Bulls Running Out Of Gas?

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Crude Oil futures surged +44% in a little over two months and recently hit yearly intraday highs of 93.17, with that dreaded 100 level now within sight. However, oil could be near the start of a consolidation period as it recently breached the +1 Standard Deviation Channel near 91.30 and pulled back. This suggests that prices are at a relatively more extreme level given the past year’s history and provides a potentially important resistance area, so now traders must decide whether to bet on mean reversion or trend continuation.

Some popular momentum indicators also suggest a technical bump in the road. The MACD is on pace to make a bearish crossover today, and RSI dropped back below the overbought level, which is typically regarded as a bearish signal.

To the downside, the confluence of the 21-Day Exponential Moving Average near 87 and the Parabolic SAR near 88 could provide potential pivot points, and bearish crossovers would lend further evidence toward shifting trend. The old highs near 84 also could provide support. To the upside, watch the +1 SD Channel and the old highs, as well as the +2 SD Channel near 100.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.