Ichimoku Cloud analysis of the Light Crude Oil futures (CL1) market shows signs that the market is going to make a bullish move. The market has been flat since March after its last push-up at the beginning of 2022. With current geopolitics reducing crude oil supply, the charts indicate prices are looking to head higher.  
 

Light Crude Oil Weekly Ichimoku Cloud Chart

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Light Crude Oil has formed a bull flag over the last couple of months, with prices above the Ichimoku Cloud. Momentum has shifted up on the weekly Ichimoku Cloud. Prices have pulled away from the conversion line. Light Crude has pushed through March 24, 2022, high and is working to break above the bull flag congestion zone. Look for prices to continue upwards to the Wave 7 high and then on to the 3.618 target.  
 

Light Crude Oil Daily Ichimoku Cloud Chart

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The weekly bull flag is shown on the daily chart as an extended congestion zone. On May 4^th Light Crude Oil indicated a shift in momentum to the upside. Notice how the market’s lows have been getting progressively higher since the bottom of Wave 2. Additionally, the highs have also been slowly getting higher. Price has broken over the daily Ichimoku Cloud, as has the Lagging Line, a sign that the buyers are gaining the upper hand. 

The daily chart does not show a clear up-trending market, it looks flat. However, the Ichimoku Cloud is picking up signals, that Light Crude Oil is setting up for another push to the upside. The current move above the March 24th high, green lights an opportunity for buyers to go long Light Crude Oil.  

An obvious quick target is the old Wave 1 high on the daily chart. Crude Oil prices are likely to head higher, though, to the target zone indicated, as the market will find resistance in this area and back off.  
 

Light Crude Oil 60-Minute Ichimoku Cloud Chart

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The 60-minute chart shows Light Crude Oil started making its upwards move at the end of last week. Crude Oil broke above the Ichimoku Cloud and the strong momentum took prices through the target zone before congesting into a bull flag. The target zone acted as support for the bull flag, a very bullish sign. A wave 6 formed, as the bulls gathered energy to push higher. In today’s move Light Crude Oil broke up to the 1.618 target. As the 6 Wave was shallow, the 1.618 target was in front of the target zone.  It’s likely Light Crude Oil will now consolidate on the 60-minute chart at the 1.618 target before making another move up. 

Buyers looking to go long Light Crude Oil, could use a break of the next 60-Minute bull flag as an opportunity to enter.  

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