WTI crude oil triggered a one-week bullish reversal, its first rise above a prior week’s high in seven weeks, according to FXEmpire analyst Bruce Powers. But a fresh one-day bearish reversal and stiff resistance near the 200-day moving average leave the recovery unconfirmed.
WTI crude oil is showing the first tentative signs of a bottom, yet buyers still have to clear a wall of resistance before any broader recovery can take hold. Analyst Bruce Powers notes the market rallied above last week’s high of $72.37, triggering a one-week bullish reversal that will only confirm on a weekly basis if Friday’s session closes above that level.
First higher weekly low in five weeks
This was the first week out of seven to see a rise above the prior week’s high, and a higher weekly low formed for the first time in five weeks. Both point to improving momentum after last week’s trend low of $67.73. A 78.6% Fibonacci retracement of the prior advance completed near $68.81, which suggests the bearish pullback may have run its course.
But the source keeps the claim hedged: this week’s action suggests the correction is done, though further confirmation of strength is still needed.
Resistance near the 200-day average holds firm
An initial bounce off last week’s low reached a high of $76.61 on Wednesday, testing the $76.83 spike-low support zone from March 10 as resistance. Key dynamic resistance sits at the 200-day moving average near $78.61, which was briefly reclaimed intraday Wednesday before price closed back below it. Then on Thursday a one-day bearish reversal triggered, with a lower daily high of $75.29 confirming resistance near that average, reinforced by the 20-day moving average near $73.90.
Upside targets stack above $79
Crude still bounced from a support zone tied to a long-term falling wedge that broke out on March 2, so short-term weakness could yet resolve higher. A break above $76.61 would open the door to higher targets, but the next two levels of $79.23 and $81.94 must fall first. Only then does the $88.90 zone — prior support from a symmetrical triangle — come into view as the primary upside target.
Source: FXEmpire
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