WTI is in correction mode as it tests the confluence of resistance levels on the 4-hour chart.
Is the trend still our friend in this direction?
Check out the inflection points I'm watching:
West Texas Intermediate (USOIL) 4 hours Chart by TradingView
Expectations of increased demand for crude oil in the summer have pushed commodity prices up recently.
But can he continue his rise?
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven't done your financial homework on the US Dollar and Crude Oil yet, it's time to check the economic calendar and stay up to date with daily fundamental news!
WTI is currently testing a former support area around the $78 per barrel level, which coincides with a downtrend line that has been holding since April.
To top it off, this corresponds to the 61.8% Fibonacci retracement level and R1 ($77.65 per barrel) as well!
The moving averages indicate that the selling is likely to resume rather than reverse, as the 100 SMA is below the 200 SMA. In addition, the dynamic resistance of the 200 SMA coincides with the trend line to increase its strength as a ceiling.
If so, crude oil may return its sights to the swing low at $72.28 per barrel near S1 ($72.74 per barrel).
On the other hand, a break above a strong resistance area may represent the beginning of a reversal from a long-term downtrend.
Geopolitical headlines were driving crude oil's trend earlier in the year, but the impact of escalating tensions on global supply concerns appears to be fading.
Don't forget that the OPEC+ group had already agreed to extend production cuts until 2025, but the commodity seemed to ignore the decision as it continued its decline.
However, the upcoming US stimulus may have an impact on the movement of crude oil prices and overall market sentiment. After all, adjusting the timeline for interest rate changes could have strong implications for global growth and commodity demand.
do you think that Release of the US Consumer Price Index Will the FOMC statement make or break the crude oil trend?