The recent price action in Crude Oil indicates that the market needs some rest as we haven’t seen a sustained rally despite the big geopolitical risk in the Middle East between Israel and Iran. Overall, the fundamentals remain supportive for the market as we’ve been seeing a pickup in economic activity, although the expectations for rate cuts continue to dwindle. The technicals will be important to monitor as a drop below the key $83 support zone could start to signal a turnaround in the bullish trend.
WTI Crude Oil Technical Analysis – Daily Timeframe
On the daily chart, we can see that Crude Oil got stuck in a consolidation lately with a slight bearish tilt as the price continues to pull back into the key $83 support zone. That’s where we can expect the buyers to step in as they will also find the confluence of the trendline, the red 21 moving average and the 38.2% Fibonacci retracement level. The sellers, on the other hand, will want to see the price breaking lower to invalidate the bullish setup and position for a drop back into the lows.
WTI Crude Oil Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price is breaking below another minor trendline which should see some sellers piling in to target a drop into the major trendline for a pullback. There’s not much else we can glean from this chart, so we need to zoom in to see some more details.
WTI Crude Oil Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more clearly the consolidation that’s been going on since last Monday. We can also see that we have a downward counter-trendline where the sellers piled in for a better entry to target a drop into the major trendline.
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