Crude Oil Weekly Chart

Technical Outlook: Last month we highlighted that a multi-month consolidation break was imminent in crude prices with a topside breach favored. Oil broke out into the close of the year with the advance now eyeing near-term confluence resistance at 64.78– this level is defined by the 100% extension of the 2016 advance and converges on the median-line of the ascending pitchfork formation we've been tracking for months now.

Crude Oil Daily Chart

67.17 backed by the 50% retracement at 70.41.

Crude Oil 240min Chart

Notes: Interim support rests at 63.23 (the measured consolidation target) with a break below the 2015 highs at 62.56/trendline support needed to shift the medium-term focus lower. Bottom line: The immediate advance is at risk while below 64.78 but the broader focus remains constructive while above 59.12(bullish invalidation). From a trading standpoint, we're on the lookout for a pullback to ultimately offer more favorable long-entries while within the confines of the broader bullish formation.