Crude Oil Skyrockets To Unprecedented 2023 Highs - Analyzing The Technical Factors Fueling Its Surge And The Increasing Likelihood Of Hitting The $100 Milestone

• The crude oil market has been highly volatile, swinging from a high of $129 per barrel in March 2022 to a low of $63 in May 2023.
• Last week, the market reached a pivotal moment when crude oil prices broke through a key resistance level at $83.

The volatile crude oil market has experienced significant fluctuations in the past two years.

From reaching a high of $129 in March 2022, to dropping to a low of $63 in May 2023, investors and market analysts have faced a turbulent ride. 

As a result, the market has consolidated within a wide range, limiting the formation of any long-term trends.

The price of crude oil, which had dropped to a low of $63, found strong support from the weekly 200 simple moving average.

This key indicator has played a crucial role in maintaining the price and rebuilding its strength.

As a result, the price climbed and surpassed the significant $70 mark, which was also the lowest point price reached in 2022.

By July, the price had climbed even higher, surpassing $80 and signaling a potential shift in market sentiment.

In the year so far, crude oil has experienced a modest but promising increase of just over 6%.

This positive development is especially welcome news, considering the 21% drop in price by May.

The 6% recovery can mostly be credited to a bullish movement of 16% in July, which successfully lifted the commodity from its decline, providing it with the momentum to continue higher.

Last week, the crude oil market reached an important turning point as prices surged past the critical resistance level of $83.

This breakthrough marks a significant milestone, marking the highest prices seen in 2023 so far.

The breach of this resistance level has the potential to spark the emergence of a new trend.

Currently, there are no significant obstacles preventing the price from establishing a trend within the consolidation zone.

Although the $90 resistance above may pose a temporary challenge, the real psychological barrier lies at $100.

This level is expected to bring some turbulence, potentially slowing down the upward movement of the price or even causing a reversal.

The recent developments indicate the start of an optimistic trend in crude oil, the first of its kind since March 2022.

This presents a valuable opportunity for investors to reassess their strategies and closely track this valuable commodity.

The current market conditions strongly suggest that we may be on the verge of a long-lasting bullish trend, making it a crucial time for investors to carefully monitor the performance of crude oil.

After the closing bell on Monday, September 4, the stock closed at $85.94, trading down by 0.03%.