On the daily chart below, we can see that the price is still stuck in a range between the support at $73 and the resistance and $83. Generally, there are two ways to approach this kind of market: stay out or “play the range” by buying at support and selling at resistance.
Once the price breaks out of this range we should get a clearer picture of where the market is most likely to go. On an upside breakout we should see $93 as the first target for the buyers and on a downside breakout we should see $63 as the target for the sellers.
On the 4 hour chart below, we can see inside the range and it looks like it’s getting even narrower going forward. Lately, we got some bullish news for the oil market like Russia planning to cut production by 500k BPD in March or China reopening with yesterday’s PMI coming in strongly confirming a pick up in economic activity.
These developments though failed to give oil prices much strength as the market is also held back by the global central banks tightening to restrain demand.
On the 1 hour chart below, we can see that the price bounced near the support zone at $73 and then started trading upwards within a channel.
The price is now struggling to break a previous swing level at $77.74, so we are likely to see a pullback to the bottom of the channel and then the buyers are likely to enter again targeting a break of the resistance for further extension to the $83 resistance area, and the sellers will look to a breakout to the downside of the channel and start targeting the support area at $73.