Crude oil extends its short-term advance – is this the start of a new uptrend or just a correction?
The crude oil futures contract closed 0.31% higher on Friday, extending Thursday’s 1.7% rebound and breaking above the $68 level. Wednesday’s FOMC meeting had little impact on the markets, but oil rebounded from its local low and continued higher.
Today, oil prices are up another 0.6%, slowly breaking above their recent trading range while approaching potential resistance at $69-70.
Conclusion
Crude oil is breaking above recent highs, trading above the $68 level. The market is gaining despite a stronger USD, supported by a bullish stock market.
Is this a good time to open a short position? I don't think so - the market is approaching strong medium-term support levels and could move sideways or rebound.
For now, my short-term outlook is neutral.
Here’s the breakdown:
- Crude oil is creeping higher, now above $68.
- In my opinion, the short-term outlook is neutral.
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Thank you.
Paul Rejczak,
Stock Trading Strategist