crude oil struggles to recover 218262015
<p>US crude oil (daily chart shown below), representing the West Texas Intermediate light sweet benchmark, has struggled to recover after having hit a new five-year […]</p>
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US crude oil (daily chart shown below), representing the West Texas Intermediate light sweet benchmark, has struggled to recover after having hit a new five-year low just above $43.00 support only three weeks ago in late January.
That low marked a price extreme that capped off a 60% decline within seven months, from the $107.00-area high in June of last year to the noted $43.00-area low in January.
Since January’s low, the price of oil has generally rebounded, but in a choppy, volatile fashion. This rebound has quickly pushed price back up above key support/resistance levels, including $47.00 and $50.00.
Whether crude oil has already bottomed out remains to be seen, but price action is currently trading in a consolidation between $50.00 support to the downside and $55.00 resistance to the upside.
Any sustained climb back above $55.00 resistance, which has not occurred since the end of last year, should put oil on the path to further rebound and recovery. In this event, the major upside target resides around $60.00.
Any sustained downside move below $50.00 support could push prices back down towards key long-term support levels in the low $40s.
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