Chart Art: WTI Crude Oil (USOIL) To Revisit Its Triangle Resistance?

US crude oil prices continue to recover after revisiting August lows last week.

How far can WTI crude oil go before sellers can gather enough downside momentum?

We take a closer look at the potential resistance area:

Crude Oil WTI (USOIL) 4 hours Chart by TradingView

In case you missed it, the lack of progress in Gaza ceasefire talks has helped push U.S. West Texas Intermediate crude oil prices up from their August lows of $71.75. U.S. data and speeches by FOMC members may also have helped push interest rates lower as early as September.

Not only did WTI crude rise from the $71.75 level, it also maintained bullish momentum all the way to its current prices near $75.25.

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 market sentiment, it’s time to check out the economic calendar and stay up to date with daily fundamental news!

How high can WTI crude oil go before enough sellers step in to change its direction?

WTI is trading near the 200 simple moving average on the 4-hour chart, which was also an area of ​​interest earlier this month. Watch for bearish candles that could signal a potential bearish reversal from the recent Black Crack rally.

But until we see a potential catalyst, WTI crude oil could continue to attract buying demand. We are watching for a potential move towards the R1 pivot point line ($76.57) which is near the 200-day SMA area. More importantly, it is closer to the descending triangle resistance that has not been broken since early July.

Bearish candles and then selling momentum from the $76.50 – $77.00 area would make for a good risk/reward ratio for those who expect WTI to return to the August lows.

Of course, it is possible that WTI crude may not see sustained selling pressure for several days.

If WTI breaks through resistance areas and sustains bullish candles above the $78.00 area, the commodity could move towards the psychological $80.00 area or its previous highs of $82.00.

Whichever way you decide to play this setup, make sure to practice proper risk management and keep an eye out for major market catalysts to come!

ArtChartCrudeOilResistanceRevisitTriangleUSOILWTI