Crude Oil Breaks Out of Bearish Channel, Key Resistance Ahead

The WTI crude oil futures contract has broken out above the resistance of the falling price channel visible on its 4-hour chart. Following the bullish breakout, the commodity is now facing a key test at the 80.04 resistance level.

Potential Bullish Reversal Signal

A breakthrough of the 80.04 resistance would likely indicate that the recent downside move from the 87.07 high has completed at the 76.01 low.In this scenario, the next key upside targets for crude oil would be located in the 81.80 and 84.00 areas.

Key Support at 78.70

While the technical outlook has shifted to a more bullish bias, traders will want to keep a close eye on the 78.70 area as initial support. A breakdown below this level could potentially trigger another decline to retest the 76.01 support zone.If the 76.01 support gives way, it would likely signal the resumption of the broader downtrend from the 87.07 high, with the next key target on the downside in the 72.60 region.

Levels to Watch

For now, the key levels to watch in WTI crude oil are the 80.04 resistance, along with the 78.70, 76.01, and 72.60 support areas.

As long as the price remains above 78.70 support, the near-term technical bias will remain tilted to the upside, with the potential for a continuation move toward the 81.80 and 84.00 resistance levels if the 80.04 barrier is cleared.

However, a breakdown below 78.70 and 76.01 would likely signal a bearish reversal, with the potential for a deeper pullback toward the 72.60 support.

The direction of the next big move in WTI crude oil will likely be determined by the price action around the key 80.04 resistance level. A breakout above this area would strengthen the technical outlook, while a rejection could see the bears regain control.