August NYMEX crude oil futures had been knocking on the door of strong technical resistance at $70.00 a barrel recently, and on Thursday opened the door and walked right through it. Now, the next major upside price objective for the bulls is to challenge major psychological resistance at $75.00 a barrel. The crude oil futures market is fully bullish as an uptrend line is in place on the weekly crude chart, drawn from the January low of $49.90 a barrel, basis nearby NYMEX futures.
The next upside price objective for the crude oil bulls is to push prices above longer-term chart resistance at the September 2005 high of $70.85 a barrel. A push above that high would open the door to a challenge of the all-time high in crude oil–the July 2006 high of $78.40 a barrel, basis nearby NYMEX futures. It would take a push, and multiple daily closes, in nearby crude oil futures prices back below strong longer-term technical support at $65.00 a barrel to suggest that a near-term top is in place in the market. –Jim
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