Commodities▲ Bullish
WTI Crude Rally Tests Key Resistance at $85.84
WTI crude rallied 26.7% in 13 days to $85.84, testing resistance at the 50-day moving average. A close above $85.45 confirms the trend; failure opens support at $79.23.
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WTI crude oil touched a new high of $85.84 on Tuesday, extending a 13-day rally that has lifted prices 26.7% from the July 2 low of $67.73. The session also posted a higher daily low of $82.18, keeping the short-term uptrend intact.
The rally has brought the contract into a technical resistance zone anchored by the 50-day moving average at $85.09. Bruce, a CMT charter holder and finance MBA who wrote the analysis, said the 50-day average is part of a price cluster that also includes a 161.8% Fibonacci projection and a prior swing low from March near $85.50. The zone has already produced two daily highs – Monday at $85.45 and Tuesday at $85.84 – indicating the market is wrestling with overhead supply.
A daily close above Monday's trend high of $85.45 would confirm a bullish trend extension, Bruce said. The 26.7% gain in 13 trading days is a sharp move. He cautioned that the speed raises the odds of a pause or pullback before the next leg higher.