The latest recent crude oil increase doesn’t appear to have enough momentum to guarantee a long-term upswing just yet. This suggests that there may still be room for the downward correction that began at the end of September. After testing some very strong convergent support in August, including as the 89-day moving average, the 200-day moving average, and the August low of 77.50, oil has bounced back.
Oil withdrew earlier in the month from strong converging hurdles, including as the weekly charts’ Ichimoku cloud and the October high of 93.00. This resistance level is still critical; a breach above it is required to ensure that the June comeback is more than a one-time anomaly.