Crude oil long-term projection

The war between Russia – Ukraine continues to cloud the market. Aside from the war situation, inflation also rising worldwide. It means commodities prices will continue its increase in prices. Crude oil prices also enjoy a bullish rally as Europe decides to ban oil imports from Russia.

We think the bullish trend of crude oil prices will continue in the future. Moreover, China is currently combating the spread of covid by the lockdown. When strict policies are lifted, oil consumption should increase too which should put more upward pressure on crude oil prices.

New Month

Monthly chart

Crude oil prices have been on six-month bullish streaks and the bullish momentum becoming stronger. At the current time, the prices seem testing the $110.00 – $115.00 resistance level. Traders will monitor the price reaction near the resistance area. We think no reason to turn bearish yet as there is no major bearish reaction or bearish close on the chart.

Weekly chart

The weekly chart shows a similar situation to the monthly chart. There was a bearish correction after the test on the $110.00 – $115.00 area. On the upper side, $130.00 is the level that triggers a bearish reaction. Despite the situation, crude oil prices continue building bullish pressure and currently attempt to break out above $115.00.

Crude oil prices need to climb and print a new higher high to confirm further upside. Otherwise, we might experience a bearish reversal from the $110.00 – $115.00 area.

Daily chart

The overall trend on the daily chart is bullish and the price continues moving upward. On the lower side, $95.00 is the level that acts as a support level. If a bearish movement happens then $95.00 and the daily SMA 200 will become the support levels to watch for reactions. A breakout and close below both levels will confirm a bearish continuation.

Trade plan

No change to the situation, there is no bearish confirmation near the resistance level. Crude oil prices might continue to maintain the bullish pressure and eventually breakout higher. Traders will monitor the reaction at the $110.00 – $115.00 resistance area for now. As long as the price stay above $95.00 and daily SMA 200, there is no reason to turn bearish yet.