Crude oil has been on a tear nowadays, but could it sustain its rallies past this longer-term area of interest?

Try these inflection points I’m watching on the 4-hour timeframe.

WTI Crude Oil (USOIL) Chart by TradingView

Geopolitical tensions are back out there mix nowadays, propping the energy commodity higher over again on supply concerns.

Because it turned out, ceasefire negotiations are beginning to break down as Israel claimed to have killed Hezbollah’s top commander in a Beirut operation earlier this week.

This, together with a surge in risk appetite stemming from a dovish FOMC statement, took crude oil near its 50% Fibonacci retracement on the 4-hour chart.

Keep in mind that directional biases and volatility conditions in market price are typically driven by fundamentals. In the event you haven’t yet done your fundie homework on market sentiment and crude oil, then it’s time to envision out the economic calendar and stay updated on each day fundamental news!

A bigger correction could take crude oil as much as the 61.8% level near the $80 per barrel major psychological mark, which has held as resistance in May and support for essentially the most a part of June and July.

Oh, and did I mention that it’s right around R2 ($80.22 per barrel) and the dynamic inflection points on the moving averages, too?

The 100 SMA only recently crossed below the 200 SMA to suggest that the trail of least resistance is to the downside or that the selloff is more likely to resume, potentially taking WTI crude oil all the way down to the swing low near S2 ($74.16 per barrel) or all the way down to the June lows near S3 ($72.25 per barrel).

Nonetheless you select to trade this setup, be sure that you’re following your trading plan and using your best risk management moves so you’ll be able to trade for an additional day!