crude rally lifts OIL: will 501 ceiling finally shatter?
The chart shows a decisive recovery from the April lows, with the stock now hovering near the 501.2 resistance level. This level has historically acted as a "supply ceiling," and a clean breach here would signal a shift in market structure.
Scenario A: Bullish Breakout (Buy Above 501)
If the price sustains above 501, it confirms a breakout from the recent consolidation phase.
Trigger: 501.20
Target: 522.00 (Previous 52-week swing high area)
Scenario B: Bearish Rejection (Sell Below 492.50)
Failure to hold the current momentum could see the stock retreat into the previous value area. A breach of the support line at 492.50 would invalidate the recent rally.
Trigger: 492.50
Target: 478.50 (Structural support/EMA zone)
Scenario A: Bullish Breakout (Buy Above 501)
If the price sustains above 501, it confirms a breakout from the recent consolidation phase.
Trigger: 501.20
Target: 522.00 (Previous 52-week swing high area)
Scenario B: Bearish Rejection (Sell Below 492.50)
Failure to hold the current momentum could see the stock retreat into the previous value area. A breach of the support line at 492.50 would invalidate the recent rally.
Trigger: 492.50
Target: 478.50 (Structural support/EMA zone)
Trade closed: target reached
Lower target easily hit !
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.