U.S. crude oil price is sporting a potential reversal pattern in the 4-hour time frame!
Is the Black Crack about to see a longer-term bearish run?
Or are we just seeing a pullback?
WTI Crude Oil 4-hour Chart by TradingView
In case you missed it, crude oil prices have been trading lower since the start of the week as traders prepare for this week’s potential market movers.
Talks of a potential ceasefire between Israel and Hamas have also eased concerns over higher oil prices from the region. Add that to last week’s surprisingly weak U.S. GDP and you’ve got demand concerns and easing supply worries for the markets.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
U.S. crude oil (WTI) prices just turned lower from the $84.00 psychological level, which is not too far from April’s $84.75 support zone and the 4-hour chart’s 100 SMA area.
We’re on the lookout for a potential drop to the $81.00 handle, which would put WTI below the 100 and 200 SMAs and exactly at a potential Head and Shoulders “neckline” on the chart.
Extended losses for crude oil prices expose WTI to a potential downside breakout below the reversal pattern and maybe even a longer-term downtrend.
But if oil bulls step in at the $82.00 or $81.00 areas of interest, then the Black Crack could range between the “neckline” support and $85.00 previous highs before picking its next direction.
What do you think? Which way will U.S. crude oil prices go this week?
