After a sharp upswing earlier this week, U.S. crude oil prices are back at a key area of interest.
Is the second time the charm for WTI bulls?
We’re taking a closer look at the 4-hour time frame!
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
In case you missed it, crude oil prices got a boost yesterday as tensions in the Middle East heated up. Israel started ground operations in southern Lebanon while Iran launched a missile attack on Israel in retaliation for the killing of Hezbollah leader Nassan Nasrallah.
Meanwhile, a contraction in the U.S. ISM manufacturing PMI saw limited demand amid a risk averse trading environment.
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, which was hanging out near its $67.00 lows, shot up to the $70.00 psychological area. As you can see, the area of interest lines up with today’s R1 ($71.63) Pivot Point line, 200 SMA, a support zone in August, and a trend line resistance that’s been solid since July.
Will the bears defend the resistance zone?
Watch out for bearish wicks and candlesticks around $70.00, which could lead to WTI falling back to the Pivot Point ($69.30) area if not its $67.00 lows. A bearish rejection could also lead to the Black Crack making new monthly lows if the markets focus on global growth concerns.
On the other hand, the second time COULD be the charm for WTI bulls. If geopolitical tensions continue to escalate, WTI may see sustained trading above the $70.00 handle and head to higher inflection points like $74.00 or $77.00.
What do you think? Which way will WTI crude go in the next trading sessions?
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier market catalysts when trading this one. Good luck!