WTI crude oil has been on a tear lately, boosted by threats of additional sanctions on Russian oil.
But can worsening trade tensions force the triangle top to hold as a ceiling?
Check out these nearby inflection points I’m watching on the daily time frame.
WTI Crude Oil (USOIL) Daily Chart by TradingView
In case you missed it, U.S. President Trump isn’t on good terms with Russian President Putin once again since latter hasn’t exactly been playing nice with Ukraine during its ceasefire.
Because of that, Trump threatened secondary tariffs on Russian oil, effectively driving up overall energy prices and limiting global supply. With that, WTI crude oil popped back above the $70 per barrel mark earlier this week, possibly setting its sights back on nearby resistance levels.
Just how high can it go from here?
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!
Crude oil bulls could set their sights on the descending triangle resistance around R2 ($76 per barrel) or at least until R1 ($73.67 per barrel) just slightly above the 200 SMA dynamic inflection point.
Sustained upside momentum could even spur a break past the triangle top and a rally to the next bullish targets at R3 ($80.22 per barrel) then R4 ($84.42 per barrel).
Just be careful since the 100 SMA is still below the 200 SMA to suggest that the path of least resistance is to the downside or that there’s a good chance the selloff could resume. In that case, look out for a move back to the triangle bottom near the pivot point level ($69.46 per barrel) and S1 ($67.12 per barrel).
Also note that global trade tensions are still in play ahead of “Liberation Day” as retaliatory measures from U.S. trade partners could cloud the outlook for energy commodities like crude oil.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!