Important recovery for crude

By Julian Yosovitch August 31, 2015 • Reprints

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Crude oil closed at $45.20 per barrel on Friday, showing that there’s an important recovery under way.

Looking at the chart, we can see that after its latest rally, crude has been left in a bullish trend. 

To confirm these bullish signals, we have to see hikes above $46.00-$47.00, surpassing last week's highs and the 38.2% of fibonacci signal of the entire last selloff. With a break above that resistance level, we will see a further progress toward $50-$53, attacking medium-term resistance.

Overcoming such obstacles is required to confirm a further recovery, pointing toward higher areas of $62.60.

If there is a bearish attempt, we will see crude oil find support at $ 42.50, or potentially at $ 40.80.

With a direct fall to below $37.75, the mentioned bullish signals can be disregarded and we will see a continuation of the bearish movement toward $36, and even more depressed values in the coming weeks.