WTI crude oil prices just busted above a trend resistance zone.
Think Black Crack will eventually return to its longer-term downtrend?
We’re looking at the 4-hour time frame for clues on where bears could jump in:
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
In case you missed it, U.S. crude oil prices kept a mid-week rally going on Friday, pushing past $70.00. The move came after tensions between President Trump and Ukraine’s President Zelenskyy escalated, raising the chances of a military conflict and stoking global growth fears.
Meanwhile, the safe-haven U.S. dollar got a boost from the risk-off mood, extending its gains against major counterparts.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
WTI crude struggled to break past $70.50 last week but still closed above $70.00 on Friday, suggesting buyers are maintaining some control.
If bullish momentum holds, WTI may retest the $71.00 psychological level, which aligns with R1 ($71.30) Pivot Point resistance and the 100 SMA on the 4-hour chart.
A sustained break above this area could pave the way for a move toward $72.00, where descending channel resistance might attract sellers.
On the flip side, a failure to gain traction at current levels could lead to renewed bearish pressure.
If more red candlesticks pop up and selling momentum picks up, WTI may drop below the mid-channel line, potentially revisiting the $68.00 area.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
