Oil price climbs to 6-week high, breaks key resistance levels

The price of crude oil has moved higher today and is breaking above a double top on the hourly chart as well as the 50% midpoint of the move down from the August 13 high. Those levels come in at $72.36 and $72.67 respectively. The break higher took the price up toward the $74 level with a high reach today at $73.92.

Yesterday, the price moved higher and in the process, tested the high price from September 24. Holding against that level, gave the sellers the go-ahead to move lower, and they took the price back lower, but that fall stalled right near the 200-hour moving average (green line) currently at $69.82.

The price yesterday bounced off of that level and has seen increased momentum in trading here today – breaking above the aforementioned targets in the process.

Close support and risk will now be eyed at the prior resistance between $72.36 and $72.67. Stay above, and traders will target the $74.43 level where the 61.8% and other swing levels are found (see blue numbered circles).

This article was written by Greg Michalowski at www.forexlive.com.