US OIL stuck In a trendline resistance. Can it break out? The crude oil price has been on a steady climb this week, with two consecutive increases since the beginning. Today American market has not opened yet, but its possible prices will continue climbing even more tomorrow if they haven't already. But the crude price stuck below the trendline resistance nearly $75.30/barrel.
The rise in crude goods is likely due to increased demand out east caused by cold weather and holiday celebrations—the recent production cuts between OPEC members like Saudi Arabia who want lower gas prices.
At the same time, other countries need higher profits now instead of later when there might be fewer buyers because everyone needs fuel at some point or another-especially during winter months which require lots of road salt.
From the current crude price, $75.30 is the total resistance area. Breaking above $75 will open the door for $85/barrel.
On the other hand, as the market holds below the trendline resistance level, it may also correct a little bit to the downside. But fundamentally, I don't think it will drop a lot. It probably won't fall but a lot, but as a correction, it can test moreover $68.
Note: Don't go short on Oil as long as fundamental factors support be a higher price, at least during this month.
