After the sharp rise seen earlier this week, US crude oil prices are back in the main area of concern.
Is the second time a charm for WTI bulls?
We take a closer look at the 4-hour time frame!
West Texas Intermediate (USOIL) 4 hours Chart by TradingView
In case you missed it, crude oil prices got a boost yesterday as tensions escalated in the Middle East. Israel began ground operations in southern Lebanon, while Iran launched a missile attack on Israel in response to the killing of Hezbollah leader Nasrallah.
Meanwhile, the contraction in the US ISM Manufacturing PMI saw limited demand amid a risk-off trading environment.
Remember that directional biases and volatility conditions 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 check the economic calendar and stay up to date with daily fundamental news!
WTI, which had been moving near the lows of $67.00, rose to the psychological $70.00 region. As you can see, the area of interest is in line with today’s R1 ($71.63) pivot point line, the 200 SMA, the August support area, and trend line resistance that has been strong since July.
Will the bears defend the resistance area?
Watch for bearish wicks and candlesticks around the $70.00 level, which could see WTI pull back into the pivot point area ($69.30) if not the lows at $67.00. A bearish rejection could also see Black Crack make new monthly lows if markets focus on global growth concerns.
On the other hand, the second time may be the charm for WTI bulls. If geopolitical tensions continue to escalate, WTI could see continued trading above the $70.00 level and head towards higher inflection points such as $74.00 or $77.00.
What do you think? Which direction will West Texas Intermediate crude oil head in the upcoming trading sessions?
Whatever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier market triggers when trading this. good luck!