Remember that support zone we discussed a few days ago?
It seems the bears had more momentum than we anticipated!
Now, USOIL could find support at a trend line that has been holding since early September.
What are your thoughts on this 4-hour setup?
WTI Crude Oil (USOIL): 4-Hour Analysis
WTI Crude Oil (USOIL) faced another setback last week, primarily due to concerns about China’s economic growth and easing tensions in the Middle East, which alleviated some global supply worries.
However, that was last week.
Over the weekend, Israel announced plans to target Hezbollah’s financial operations in Beirut, while China has cut its benchmark lending rates to stimulate economic growth.
Remember, directional biases and volatility in market prices are usually influenced by fundamentals. If you haven't already, it's a good time to review the economic calendar and stay updated on daily news regarding crude oil and the U.S. dollar!
If tensions in the Middle East escalate again and concerns about China’s growth start to ease, we could see sustained buying demand for U.S. oil.
WTI crude, currently hovering around $68.00, might attract buyers from an ascending channel support established since September.
Watch for sustained trading above the $70.00 psychological level, the $70.50 Pivot Point, or the 4-hour chart’s 200 SMA. Consistent demand above these key areas could trigger a bullish move, potentially pushing WTI crude to the $73.00 inflection point.
On the flip side, if WTI crude oil bears maintain their momentum, a consistent trade below $68.00 could signal the possibility of a longer-term downtrend, revisiting previous support levels around $66.00 or $65.50.
What are your thoughts? Which direction do you think USOIL prices will take in the coming days?
