WTI crude oil recently busted through its descending triangle top, hinting that a rally of the same height as the formation is due.
Price is still retesting the former resistance, which might now hold as support. Check out these inflection points I’m watching on the 4-hour chart!
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
Crude oil bulls appear to be taking the upper hand, as the energy commodity reacted positively to the OPEC+ decision to delay its production hike, easing fears of a global supply glut.
However, concerns about China’s weaker-than-expected economic figures and trade concerns stemming from a Trump administration could still weigh on overall oil demand.
Can WTI crude oil still find support at this area of interest?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on WTI crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The 100 SMA is still below the 200 SMA to suggest that the path of least resistance is to the downside or that bearish pressure is present, possibly leading to a larger correction for crude oil. In this case, watch out for a dip to the 61.8% Fib or S1 ($68.26 per barrel).
If support around the Fibs still holds, look out for a continuation of the breakout move to the swing high at $71.40 per barrel or the next upside targets at R1 ($72.58 per barrel) then R2 ($74.14 per barrel).
As always, watch out for other top-tier catalysts that could impact overall market sentiment, and make sure you practice proper position sizing when taking any trades!