Wedge Breakout Faces Its First Pullback

In addition to the rising channel that suggests a potential target near the upper boundary of that pattern, crude oil broke out of a falling bullish wedge continuation pattern two weeks ago. That breakout preceded the rally to $97.17 but there has not yet been a notable pullback since the breakout. Tuesday’s price action suggests that the first pullback may have just begun. If support holds above $88.66 and is followed by renewed strength, a higher swing low would reinforce the bullish structure and increase the likelihood of another advance as the wedge breakout continues to unfold.

Upside Targets Reach Toward $120

An initial upside target zone extends from $106.89 to $109.74, where several technical indicators converge. This zone remains valid unless weakness breaks support at the 50-day moving average, now near $92.89 and rising. Beyond that zone, a rising ABCD pattern projects a potential target at $120.90, close to the March spike high of $119.54, where resistance could emerge.