U.S. crude oil prices are almost at a key support zone in the 4-hour time frame.
Is the Black Crack ready for another swing higher?
Or will WTI bears force a retest of lower previous levels before letting the bulls gain some ground?
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
In case you missed it, U.S. oil prices gained a few points on Wednesday as oil traders juggled the ceasefire between Israel and Hezbollah and EIA reporting higher U.S. crude oil inventories. Meanwhile, a decreased demand for the U.S. dollar is supporting counterparts like crude oil.
WTI crude oil, which dipped from the $71.00 area, made another play for the $68.00 levels close to the S1 ($67.98) Pivot Point line. As you can see, the area is also close to the bottom of a range on the 4-hour time frame.
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 market sentiment, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Is WTI ready to swing higher? Or will bears drag the asset lower before letting the bulls get a few pips in?
Look out for green candlesticks and consistent trading above $68.00, which could attract enough momentum traders into pushing USOIL back to the $70.00 mid-range and psychological level if not the $72.00 previous highs.
On the other hand, sustained trading below the S1 Pivot Point line opens the possibility of a retest of the $67.00 major range support. And, if there’s enough momentum, we could see consistent trading below the range that could lead to a downside breakout.
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!