Missing the steady uptrend on crude oil prices?
This might be another chance to catch a dip on a quick pullback!
Check out these correction levels I’m eyeing on the 4-hour time frame.
WTI Crude Oil 4-hour Chart by TradingView
Crude oil is stalling on its climb after seeing stronger than expected U.S. CPI data that reinforced expectations of “higher for longer” U.S. borrowing costs.
The surprise build in EIA crude oil inventories also brought bearish vibes, as the increase of 5.8 million barrels in stockpiles versus the projected gain of 0.9 million barrels suggested weaker demand conditions.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie 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!
With that, the commodity might be poised to keep retreating for the time being, possibly testing the nearby support zones marked by the Fibonacci retracement tool.
The 38.2% level seems to be attracting some buyers lately, but a larger correction could still test the 50% Fib near the $84 per barrel mark, S1 ($83.68) and the rising trend line that’s been holding since February.
The 100 SMA dynamic support also lines up with this area to add to its strength as a floor and is above the 200 SMA to hint that the uptrend is more likely to resume than to reverse.
If any of the Fibs are able to keep losses in check, stay on the lookout for a continuation of the climb to the swing high or up to R1 ($88.63) then R2 ($90.58).
Are there any other catalysts that could still impact market sentiment and USD direction at the end of this trading week? Just make sure you keep your eyes and ears peeled for geopolitical headlines, too!