Crude oil flipped the script on Tuesday. What looked like a bearish breakdown last week has now morphed into a sharp bullish reversal. Prices surged to a nine-day high of $64.90, erasing the downside implications of a failed bear flag.
False moves often fuel fast moves, and crude’s rally fits that mold. A strong close above $64.36 would confirm the breakout reversal and mark a decisive shift in momentum.
Reclaiming Key Averages and Breaking Patterns
The bulls scored two technical victories today. First, they reclaimed the 20-Day moving average at $64.02 — a level that has repeatedly capped rallies in recent weeks. More importantly, crude broke out of a falling wedge pattern at the same time it cleared the short-term range. Wedge breakouts are often early warning signs that a trend is turning, and this one is flashing in favor of higher prices.
Eyes on the 50-Day Test
The next battle zone lies near the 50-Day average, currently $65.41. This level carries added weight thanks to an anchored VWAP from the April 9 low, sitting at the same price. A close above this dual resistance would further validate the reversal, opening the way for a push toward $66.53 — a swing high that aligns with the 50% retracement of the recent decline. Beyond that, the 200-Day average at $67.48 marks a logical upside target.
