WTI crude oil fell through support around the $62 per barrel mark and now seems ready to retest this area of interest.
Will it hold as resistance?
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
Resurfacing oversupply concerns, this time driven by the OPEC+ rumored production increase and resumed Iraqi Kurdistan crude flows to Turkey, dragged WTI crude oil below a strong support zone early last week.
However, geopolitical tensions in Russia kept losses in check, as investors continued to worry what escalating conflict could mean for oil production.
Can the energy commodity go for a higher bounce?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on WTI crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The focus shifts to the upcoming release of the FOMC meeting minutes this week, as their policy bias could still impact overall risk appetite leading up to the delayed NFP release.
Meanwhile, the U.S. dollar could stay on the back foot due to expectations of a downbeat official jobs report that could stoke expectations for a more dovish Fed, possibly spurring another boost for risk assets.
WTI crude oil is closing in on the pivot point level ($62.16) that lines up with the broken floor while a larger correction could reach the 38.2% Fib closer to $63 per barrel. The 50% Fib could also keep gains in check, as it lines up with the dynamic inflection points at the moving averages.
Look out for reversal candlesticks at these areas since a continuation of the slide could take crude oil to the swing low at $60.35 per barrel or to the next bearish target at S1 ($58.92).
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.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
