On the daily chart below, we can see that from the flash crash into the $64 low back at the start of May, crude oil has rebounded strongly and it’s now threatening a breakout of the previous range support now turned resistance.
The 50% Fibonacci retracement level and the red long period moving average acted as resistance for the buyers at the first try and the sellers piled in for another fall. The downside was limited though, and oil prices started to rise again. This series of higher highs and higher lows may be a signal that the oil market is switching to a more bullish bias.
WTI Crude Oil Technical Analysis
On the 4 hour chart below, we can see that the price is struggling a bit above the resistance zone but the buyers have clearly had the upper hand lately. The sellers may also be concerned about yesterday's comments from the Saudi oil minister where he “advised” the speculators to watch out because they will be ouching. That looks like a threat to deliver more cuts to the production like OPEC+ did back in April if the price falls too much. So, we might have this big range here until the global economy starts to fall apart and demand drops heavily.
On the 1 hour chart below, we can see that the price is now hovering just above the 50% Fibonacci retracement level and a previous swing high. The buyers should pile in here to target the $77 level first and the top of the range at $83 next. The price action around this resistance zone formed an ascending triangle type of pattern which strengthens the case for more upside. The sellers won’t have much conviction on the downside unless oil prices slide below the upward trendline.
