A rebound in crude oil prices has pushed West Texas Intermediate (USOIL) crude higher from a key technical support area.
Will this cause USOIL to reconsider areas of highest interest?
Let’s check the 4-hour time frame:
West Texas Intermediate (USOIL) 4 hours Chart by TradingView
If you read Thursday’s market summary, you’ll know that crude oil prices extended their gains since earlier this week as traders priced in a surprise EIA inventories, OPEC+ members likely delaying planned production increases, and Iran threatens attacks on… Israel.
Meanwhile, the US dollar is losing some strength as expectations persist for further interest rate cuts from the Federal Reserve and some traders exit their US dollar trades ahead of next week’s elections.
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 (USOIL) prices rebounded from the S2 pivot point of $67.00 and the previous support area and attracted enough buy demand to hit the key psychological handle at $70.00.
The commodity is now consolidating at $70.50, near the pivot point level ($70.80) and the 100 and 200 simple moving averages on the 4-hour chart. More importantly, it is not too far away from the $72.00 mid-range area.
How high can USOIL fly before the bears pounce again?
Watch for clear bullish candles above the simple moving averages, which could set up USOIL to test the mid-range area at $72.00 if not the previous highs at $77.00 and range resistance levels.
But if USOIL turns lower from the pivot point line, Black Crack could attract enough bearish pressure to revisit its range support at $67.00 and previous lows.
What do you think? What direction will USOIL take in the next few days?
Stay on your toes for any headlines that could impact overall market sentiment and the outlook for crude oil supply or demand!