Earlier this week, US crude oil prices fell from the $84.40 area for the second time this month.
Are Oil Prices Heading Down? Or Are Bulls Taking a Break?
Crude Oil WTI (USOIL) 4 hours Chart by TradingView
As we mentioned today Daily Market SummaryCommodities such as crude oil have been hit by the overall strength of the US dollar. The black currency, in particular, has attracted bearish trading as concerns about Hurricane Beryl’s impact on Texas oil production ease.
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 the US dollar yet, it’s time to take a look at the economic calendar and stay up to date with the daily fundamental news!
West Texas Intermediate crude oil, which has been making higher highs and lows since late June, was rejected from the $84.40 area for the second time this month. It didn’t help that the resistance area is near the R1 pivot line.
Is the commodity over its uptrend? Or are the bulls taking a break?
WTI is trading near $82.25, a level that is close to the S1 pivot point line ($81.66), the 100 simple moving average, and the previous area of interest.
A couple of decisive bullish candles or sustained trades above $82.25 would put WTI prices on the cusp of a potential test of the previous high of $84.40. If fundamentals support risk or turn against the US dollar in the coming days, we could see fresh monthly highs for the asset.
On the other hand, sustained trading below the 4-hour trend line or S1 pivot point support opens up the possibility of a bearish breakout.
WTI crude could attract enough bearish demand to head towards the S2 pivot point area ($80.03) if not the $79.50 levels near the 200 simple moving average.
What do you think? Will oil prices rise or fall after their current stability?