A recovery in crude oil prices just pushed WTI crude oil (USOIL) higher from a key technical support zone.
Will this lead to USOIL revisiting higher areas of interest?
Let’s check out the 4-hour time frame:
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
If you’ve read Thursday’s Market Recap, you’ll know that crude oil prices extended their upswings from earlier this week as traders priced in a surprise EIA inventory draw, OPEC+ members possibly delaying their planned production increases, and Iran threatening attacks on Israel.
Meanwhile, the U.S. dollar is losing some ground as expectations of further Fed rate cuts persist and some traders exit their USD trades ahead of next week’s elections.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
WTI crude oil prices (USOIL) bounced from the $67.00 S2 Pivot Point and previous support area and even drew in enough buying demand to hit the $70.00 major psychological handle.
The commodity is now consolidating at $70.50, which is near the Pivot Point ($70.80) level and the 100 and 200 SMAs in the 4-hour chart. More importantly, it’s not too far from the $72.00 mid-range zone.
How high can USOIL fly before the bears pounce again?
Keep an eye out for clear bullish candlesticks above the SMAs, which could set up USOIL for a test of the $72.00 mid-range area if not the $77.00 previous highs and range resistance levels.
But if USOIL turns lower from the Pivot Point line, the Black Crack could attract enough bearish pressure to revisit its $67.00 range support and previous lows.
What do you think? Which way will USOIL go in the next few days?
Stay on your toes for any headlines that could impact overall market sentiment and the supply or demand outlook for crude oil!