US Crude Oil Prices Just Showed A Red Candle Around A Major Turning Point!
Are we witnessing the possibility of Black Crack extending its long-term downtrend?
The 4-hour chart may give us more clues:
Crude Oil WTI (USOIL) 4 hours Chart by TradingView
In case you missed it, rising geopolitical tensions in the Middle East, optimism about lower interest rates in the United States, and tightening global supply have helped support U.S. crude oil prices in the past few days.
West Texas Intermediate (USOIL), which bottomed at around $65.25 last week, is now trading near the $70.00 level.
Remember that directional biases and volatility in market prices are usually driven by fundamentals. If you haven’t done your homework on crude oil and market sentiment, it’s time to check out the economic calendar and stay up to date with daily fundamental news!
But that was yesterday. USOIL stock appears to have reached a ceiling near $70.50, which is in line with the middle channel resistance level on the 4-hour time frame.
The potential resistance area is more interesting because it is not too far from the 38.2% – 50% Fibonacci retracement area and the R1 pivot point line ($71.23) on the chart.
Is USOIL Ready to Extend Its Downtrend?
We are closely watching the current red candle to see if the bearish momentum will continue below the $70.00 level. A move towards the previous lows at $66.25 could be on the cards if the bearish pressure on USOIL continues.
An extended rise is not out of the question either.
Watch for bullish candles and sustained trading above $72.00 and the 100 and 200 SMAs. Green candles above the potential resistance area could pave the way for an upside breakout and a retest of previous areas of interest at $76.00 and $78.00.