US crude oil prices fell badly throughout the week, as traders took into account global demand concerns.
How far can the price of crude oil fall with so many closely watched support levels nearby?
We take a closer look at the 4-hour WTI (USOIL) time frame!
West Texas Intermediate (USOIL) 4 hours Chart by TradingView
In case you missed it, Black Crack was having trouble attracting sustained demand throughout the week as traders bought more US dollars.
Meanwhile, OPEC has just lowered its demand forecasts for 2024 and 2025 (again!), citing concerns about demand from key markets such as China and India.
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!
WTI, which turned lower from a medium-range zone, is now trading near the $68.00 psychological level. This is conveniently close to the S2 pivot point line ($67.93)!
More importantly, it is a long way away from the $67.30 range support area which has not been broken since September of this year.
How far can USOIL go with all these potential support levels attracting buying interest?
We are closely monitoring bullish candlesticks that may indicate a bullish breakout from USOIL’s current consolidation. Look for a steady trade above $69.00 or $70.00, which could attract enough demand to push USOIL to its mid-term levels of $72.00 if not the $77.00 range resistance area.
Of course, it is also possible that we could see a bearish breakout in the making.
Watch for continued trading below the $67.00 level, exposing the asset to a retest of the September lows at $65.25 or even a drop to the psychological $64.00 level. Yeppies!
As always, stay on your toes for major headlines that may impact overall market sentiment, and practice appropriate position sizing when making any trades!
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