Crude oil has rallied into important resistance that was initially tested back in June. This time however, it’s looking like the bulls will win.
Click here to watch a video explaining how to read markets using volume at price.
On the initial test to the zone of resistance at 50.91 – 52.91 back in June (red arrow), sellers pushed crude back out of this zone and ultimately back to $40 per barrel.
Prices recovered and oscillated between the well-defined high-volume areas (blue arrows) before once again moving to test this resistance zone again.
Maintaining support at 47.75 – 49.47 (green arrow) will maintain a near-term bullish bias and point to a likely break higher, above the current resistance zone at 50.91 – 52.91.
