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WTI Crude Oil Threatens Bullish Continuation

Oil prices have been surging mainly because of the tension in Iraq. After blasting to 107.56 last week, oil prices have stabilized this week, coming back down to 105.12 before finding support, above the previous resistance pivot, which was at 105. 


(WTI Crude Oil 6/20, 4H chart)

As we wrap up the week on Friday trading, WTI Crude is making a bullish continuation run. It is testing a falling trendline from last week's highs. A break above 106.50 should revive the uptrend. 

Note tha tthe RSI tagged up 80, and has since held above 40, which shows maintenance of the bullish momentum. The moving averages in the 4H chart continue to be in bullish alignment. 


(WTI Crude Oil 6/20, Daily chart)

If the 107.56 level gets taken out, the first resistance area would be in the 108.90-109 area. Above that the 110 level could be psychological resistance. If demand goes up as economies improve AND tension in the Middle East does not subside. Oil price has upside toward the 2013-highs in the 110.71-112.22 area.