Crude oil futures are racing higher, up roughly $5 or 5% on the day, and pushing into a key decision zone.
Crude oil futures are racing higher, up roughly $5 or 5% on the day, and pushing into a key decision zone. The move to the upside has been supported by reports that the Trump administration is speaking to oil companies about a extended blockade of the Strait of Hormuz that could last for months.
The rally has brought price right up toward a swing/remembered area between $105.53 and $106.86. So far, the high has reached $105.25—just shy of that lower boundary. That keeps the market knocking on the door of a critical ceiling.
A break above that zone would open the door to the extreme highs from earlier this year—$117.63 in April and $119.48 in March. This is where the battle is. Sellers can lean against this swing area with stops just above—risk defined, risk limited—looking for a rotation back lower.