Did you miss the range breakout for WTI Crude Oil?
You may still have a chance to catch the altitude in this rapid retreat!
Let me show you the setup on the 4 hour time frame.
West Texas Intermediate (USOIL) 4 hours Planned by TV
Crude Oil managed to break out of the resistance area around $73.50 a barrel last week!
The price reached a ceiling near $77.50 per barrel and is now retreating to nearby support areas. It shows a Fibonacci retracement as more buyers may be waiting to jump in.
In particular, the level of 38.2% is located at $73.48 per barrel, which may be enough to keep losses in check. If so, Crude Oil could make its way back to the swing top and beyond.
After all, the stochastic is already signaling oversold or exhaustion conditions among sellers. The oscillator looks ready to go up, which indicates a possible return to bullish pressure soon.
Also, the 100 SMA is above the 200 SMA to confirm that the support levels are more likely to hold than to break. The moving averages are close to the 61.8% Fibonacci retracement at $71.05 per barrel adding to its strength as a floor.
However, a break below this area will bring the commodity back to its range, possibly triggering a return to the bottom at $67.11 per barrel.
Weak Chinese GDP data seems to be weighing on risk sentiment so far this week, so Crude Oil could be in a soft spot. However, other top-notch economic stimuli such as US retail sales or inflation data from the UK and New Zealand may affect broad market sentiment, so watch out!
