It looks like WTI crude oil traders just can’t make up their minds!
The energy commodity remains to be hanging out at its area of interest visible on the 4-hour time-frame, as several inflection points span the region.
Will the longer-term trend persist?
WTI Crude Oil (USOIL) 4-hour Forex Chart by TradingView
Worsening geopolitical tensions within the previous week lifted crude oil prices back as much as the previous support zone across the $72 per barrel mark, which held as resistance this time.
In any case, the highlight seems to have shifted away from the Middle East conflict and back to global demand concerns, as major economies printed downbeat flash PMI readings a number of days back.
These dragged crude oil back right down to the underside of its short-term ascending channel around $60.75 per barrel, which still appears to be holding as a floor thus far.
Will we see a break lower and further downside momentum?
Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. In the event you haven’t yet done your homework on crude oil and the U.S. dollar, then it’s time to examine out the economic calendar and stay updated on day by day fundamental news!
The 100 SMA is below the 200 SMA, hinting that the trail of least resistance is to the downside. Keep an eye fixed out for a move below the channel support, as this might drag the energy commodity price right down to the subsequent bearish targets at S2 ($67.45 per barrel) and S3 ($66.36 per barrel) or all the best way right down to the swing low that lines up with S4 ($65.27 per barrel).
However, a bounce off the near-term support might be followed by a move back to the channel top near R1 ($72.28 per barrel). Sustained bullish pressure could even spur one other try and break above the world of interest, potentially lifting crude oil to the subsequent upside barriers at R2 ($73.37 per barrel) then R3 ($75.24 per barrel).
Don’t forget to practice proper risk management and stay aware of top-tier market catalysts when trading this one. Good luck!