U.S. crude oil price is sporting a possible reversal pattern within the 4-hour time-frame!

Is the Black Crack about to see a longer-term bearish run?

Or are we just seeing a pullback?

WTI Crude Oil 4-hour Chart by TradingView

In case you missed it, crude oil prices have been trading lower because the start of the week as traders prepare for this week’s potential market movers.

Talks of a possible ceasefire between Israel and Hamas have also eased concerns over higher oil prices from the region. Add that to last week’s surprisingly weak U.S. GDP and also you’ve got demand concerns and easing supply worries for the markets.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. Should you haven’t yet done your fundie homework on crude oil and the U.S. dollar, then it’s time to ascertain out the economic calendar and stay updated on each day fundamental news!

U.S. crude oil (WTI) prices just turned lower from the $84.00 psychological level, which isn’t too removed from April’s $84.75 support zone and the 4-hour chart’s 100 SMA area.

We’re looking out for a possible drop to the $81.00 handle, which might put WTI below the 100 and 200 SMAs and exactly at a possible Head and Shoulders “neckline” on the chart.

Prolonged losses for crude oil prices expose WTI to a possible downside breakout below the reversal pattern and perhaps even a longer-term downtrend.

But when oil bulls step in on the $82.00 or $81.00 areas of interest, then the Black Crack could range between the “neckline” support and $85.00 previous highs before picking its next direction.

What do you’re thinking that? Which way will U.S. crude oil prices go this week?