Crude Oil Price Outlook: Bullish Breakout Sets Stage for Rally Toward $71.84

Crude oil prices staged a sharp rebound on Tuesday, piercing through key resistance levels and signaling renewed bullish momentum. After weeks of sideways consolidation, the breakout above $69.98 marks a potential continuation of an ABCD bullish pattern, with prices now targeting the next major resistance zone around $71.84.

Bullish Momentum Builds Above Key Moving Averages

West Texas Intermediate (WTI) crude confirmed a bullish reversal after climbing past the five-week swing high of $69.98—breaking decisively above both the 50-day and 200-day moving averages. The recent upswing also found support at the rising 20-day MA, which has now turned upward for the first time since early July, reinforcing the shift in trend.

Short-Term Pullback Possible Before Further Upside

Tuesday’s high of $70.60 aligns with a previous support trendline and completes the initial ABCD pattern target. However, with today’s wide trading range, a short-term pullback cannot be ruled out. Watch the $68.77 minor swing high and the 200-day MA at $68.43 for potential support zones.

Next Bullish Target: $71.84

If bullish momentum continues, crude oil is on track to test the $71.73–$71.84 zone—formed by a 50% Fibonacci retracement and a 127.2% ABCD extension. While still trading below a broader trendline resistance, a breakout into this range would suggest a strong continuation pattern.

Weekly Close in Focus

Should WTI hold above key levels through Friday, it could secure its highest weekly close in over six weeks. The rebound also appears to be a reaction to the recent sharp drop from $78.44, and technical indicators point to a potential move higher as buyers regain control.

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