Crude oil long-term projection

The economic recovery sentiment continues to boost crude oil prices. It seems strong numbers keep coming out and inflation starts to increase. The current inflation increase could be good or bad depending on the Fed’s reaction toward it. Moreover, it seems the stimulus given to the people might be “overkill” or more than needed.

When the Fed starting to increase interest-rate, assets such as stock will take a hit. On the other hand, commodities and precious metals could thrive under a high inflation environment. Traders will expect crude oil prices to continue its increase this year especially when more economic data released.

New Month

Monthly chart

Crude oil has not shown major weakness as the price continues moving upward. As of this month, we have 10 bullish candlesticks close out of 13. Without any major bearish reaction, there is no reason for traders to switch from bullish outlook to bearish.

Weekly chart

Crude oil prices continue building more bullish pressure. Traders could see the price trading upward and target $76.89. If the price starts a bearish correction then traders could use the $65.00 level to add more long positions on bullish reaction.

Daily chart

Similar to the outlook on the weekly and monthly chart, the price of crude oil is on a bullish streak. The upward movement is not aggressive and slowly building upward which means the bullish trend is persisting. As long as there is no major bearish reaction, there is no reason to take short positions in crude oil.

Trade plan

There is no bearish sign on the crude oil chart whether it is a short-term chart or long-term chart. The price moving upward consistently though it is slowly moving upward. Under the current situation, traders will continue to avoid short positions and waiting for a bearish correction to enter long positions. The nearest support level to watch is $65.00.