FX.co ★ CL/Crude Oil

Crude Oil 2-H Time Frame Update Above Tuesday's high of $63.81, a bullish one-day reversal from Tuesday's probable higher swing low will occur. An extension of the rally above the $66.57 high is suggested by the price structure and the strength demonstrated by a persistent recovery of the 200-day average. An immediate upward target of $67.02 is indicated by a rising ABCD pattern's 127.2% Fibonacci projection. A 78.6% Fibonacci retracement of the slide that started at the July lower swing high of $71.33 is higher up. The 200-day line was recaptured during Tuesday's rally on a rise above $62.61, although it initially failed as support. To validate the line's recovery and maintain its status as a trend support indication, a daily closing above that average is required. The 10-day average of $62.62 was also regained. The intensity of the gain is further demonstrated by the 10-day average's impending crossing over the 200-day average. Support, however, should be visible at or above the 20-day average if the bearish retracement is still ongoing, indicating that buyers are in control. That average is currently $60.99 and growing. It can reach the price in a day or two because the average is increasing. That could result in an upward acceleration of momentum and satisfy a test of that line as support. Crude oil is currently on course to finish an inside week, despite the fact that it is preparing for bullish continuation. An inside-week consolidation pattern, which is usually observed following a relatively rapid move, would create a bullish setup with a lower trigger price than the current trend high, which, when finished, would be this week's high. With just three days remaining in the week, this appears likely to happen. Crude oil would require significant upward follow-through from current levels in order to break above last week's peak.