Crude oil neared the $68 level, attempting to break out of its consolidation.
The crude oil contract rebounded yesterday but remained within a consolidation that has lasted for over two weeks. It gained 1.73%, briefly breaking above the $68 level. Prices have basically continued moving sideways following declines in January and February. Wednesday’s FOMC meeting didn’t have a significant impact on the markets, but oil rebounded from its local low that day.
Today, oil prices are slightly lower, down 0.2%. The market continues to trade within a consolidation range, hovering near resistance around $68.
Conclusion
Crude oil is attempting to break above recent local highs, breaching the $68 level. However, stock market uncertainty suggests that further consolidation is likely.
Is this a good time to open a short position? I don't think so - the market is approaching strong medium-term support levels and could move sideways or rebound.
For now, my short-term outlook is neutral.
Here’s the breakdown:
- Crude oil remains in short-term consolidation.
- In my opinion, the short-term outlook is neutral.
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Thank you.
Paul Rejczak,
Stock Trading Strategist