FX.co ★ bradtke.owen | CL/Crude Oil

In the oil market yesterday, after testing the local support level at 81.06 from top to bottom, the price bounced back and formed a clear bullish reversal candle by the end of the day. Considering the overall bullish trend, it is quite possible that buyers will attempt to push the price higher today towards the nearest resistance level at 84.55. Near this resistance level, there could be two scenarios. The first scenario involves the price closing above this level and continuing to rise. If this scenario plays out, I will be looking for the price to move towards the resistance level at 87.63 or the resistance level at 89.85. At these resistance levels, I will wait for a trading setup to determine the next trading direction. There is also a possibility of reaching the higher northern target at 95.03, but this will depend on the evolving situation and how the price reacts to the mentioned higher targets. An alternative scenario when approaching the resistance level at 84.55 would be a reversal candle formation leading to a resumption of the downward movement. If this scenario unfolds, I will expect the price to return to the support level at 81.06 or the support level at 80.30. Near these support levels, I will continue to look for bullish signals in anticipation of the price moving higher. Of course, there is a possibility of reaching more distant southern targets, but I am not considering this option at the moment as I do not see immediate prospects for their realization. In short, currently, I have reasons to believe that the price may move higher towards the nearest resistance level, and we will assess the developments as they unfold.