Here’s one for the commodity traders out there!
Check the near-term inflection points for WTI Crude Oil.
The commodity has been moving sideways for quite some time, and appears to be stuck within a smaller range this time around.
West Texas Intermediate (USOIL) 4 hours Planned by TV
On the 4-hour chart above, you can see that Crude Oil is swinging back and forth between support around $64-67 per barrel and resistance around $80 per barrel.
The price recently bounced off the floor and is now in an area of interest in the middle of the range.
Now this area is also holding as resistance for some time, and it seems that the recent gap higher was not enough to lift the commodity price through the roof.
The moving averages also seem to suggest that Crude Oil could turn its sights down again on the bottom of the long-term range from here. After all, the 100 SMA is below the 200 SMA, and the latter holds dynamic resistance.
On the other hand, Stochastic has some room to run before signaling exhaustion among the buyers, so the Crude Oil bulls may remain bearish.
A break above $74-75 a barrel could be enough to open the door for another move to the top of the large range, so watch out!
Don’t forget that OPEC+ recently announced voluntary production cuts, which means that global supply may remain limited amid potentially higher demand. Just be sure to keep an eye on the risk sentiment when trading this risk asset as well.
