Crude oil extends to new highs

Technical Analysis

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The price of crude oil has extended to a gain of two dollars at $72.36. That’s up 2.77% on the day. The low price was at $70.47.

J.P. Morgan Chase CEO Jaime DImon overnight reiterated his concerns about the growing risks of global instability, emphasizing that geopolitics remains the most significant threat to the world economy. Speaking in an interview from India, Dimon warned that geopolitical conditions are worsening with risks from disruptions in energy supply and increasing involvement of other nations in ongoing conflicts. Isreal and Hezbollah and Iran tensions are elevated.

All of which seems to be contributing to the bullish bias.

Technically, looking at the hourly chart, the price low yesterday stalled right near its 200-hour moving average (green line on the chart above) and bounced. In trading today, the price based against the higher 100 hour moving average (blue line) before starting the current (more recent) run to the upside.

Both of those were bullish signals technically.

The next upside target comes against the 50% the move down from the August 13 high. That level comes in at $72.67. Close support for traders in the short term comes between $71.43 and $71.64 (yellow area on the chart above).

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