WTI prices appear to be stuck around the middle of their range at the moment!
Is it about to bounce back to support soon or is it about to continue its climb to the top?
Take a look at the near-term turning points I’m watching on the 4-hour time frame:
WTI (USOIL) 4 hours Chart by TradingView
In the 4-hour time frame, WTI is moving sideways between support at $66.85 per barrel and resistance at $77.35 per barrel, as geopolitical tensions and global supply concerns have pushed prices for the commodity over the past few months.
After closing the price gap thanks to last week’s post-election rebound, oil was once again rejected in its test of the area of interest in the middle of its range.
Where could the energy commodity go next?
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t done your homework on WTI Oil and the US Dollar yet, it’s time to check the economic calendar and stay up to date with daily fundamental news!
I see a small double top pattern with the neckline at $70 a barrel, so a break below that level could trigger a move lower to range support again.
On the other hand, a strong rally after the support-turned-resistance area at R1 ($72.22 per barrel) could pave the way for a return to the resistance range. Just make sure to keep an eye on selling pressure around R2 ($74.07 per barrel) which is also near a key psychological level.
As always, stay on your toes for major headlines that could impact overall market sentiment and practice appropriate position sizing when making any trades!