The price of crude oil continues it's move to the upside with the price moving to high of $87.90. The price is off that high at $87.18, but is still up solidly on the day (up 1.99% at $87.19). The March contract is up 1.59% at $86.37.
Looking at the February contract, the daily chart did approach a topside channel trend line at $88.07 today (the high reached $87.90), but fell short by about $0.17 to $0.20. There may be some cause for pause on the run against that topside target.
Taking a broader look at the weekly chart below, the run to the upside over the last few weeks have taken the price back into the up and down trading range going back to end or 2010 to end to 2015. That range (see red box on the chart below) was a relatively large $75.00 to around $115.00, but after breaking below the low extreme, the price had a test in 2018, but remained below, until the spike in October to early December in 2021, and the recent run back higher.
Traders need to respect that break and indeed it has led to additional upside momentum. Longer term, it would take a move back below $75.00 to hurt the bullish bias longer term.
