Fundamental Overview
Crude oil remains confined in a range between the 72.00 resistance and the 67.00 support as the market continues to weigh the future scenarios.
On one hand, we have the Trump’s victory which might be seen as bearish due to increased supply and for fear of the tariffs and a slowdown in global growth as other countries could retaliate.
On the other hand, the red sweep should see Trump focusing more on tax cuts and domestic issues first which should eventually lift global growth expectations. If we had a divided Congress, then his first priority could have been indeed a trade war.
Moreover, we have also central banks easing their monetary policies and that generally leads the manufacturing cycle, which is likely to be supportive for the crude oil market.
Crude Oil Technical Analysis – Daily Timeframe
On the daily chart, we can see that crude oil continues to range between the resistance around the 72.00 handle and the support around the 67.00 handle. The market participants will likely keep on playing the range until we get a breakout.
Crude Oil Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have another important zone in the middle of the range around the 69.50 level. The buyers will want to see the price breaking higher to pile in for a rally into the 72.00 resistance. The sellers, on the other hand, will likely step in here to position for a drop back to the 67.00 support.
Crude Oil Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more clearly the recent price action. There’s not much else we can glean from this timeframe as we remain confined in a range. The red lines define the average daily range for today.
Upcoming Catalysts
Today we get the latest US Jobless Claims figures, while tomorrow we conclude the week with the US PMIs.