U.S. crude oil prices are chillin’ near a key support zone!
Will this lead to the Black Crack turning higher in the next trading sessions?
WTI Crude Oil 4-hour Chart by TradingView
In case you missed it, crude oil’s been under pressure lately. Worries about global growth, fresh OPEC+ production coming online by September, and U.S. efforts to push Russia toward a peace deal with Ukraine have all chipped away at prices over the past few days.
The dollar hasn’t had much luck either. Soft U.S. data and growing Fed rate cut expectations have kept the Greenback on the back foot, even with the occasional lift from safe haven flows.
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!
WTI crude has been sliding since late last week, falling from the $70.00 handle and now hanging out closer to $65.50.
That puts it near the $65.00 psychological zone, which has acted as a floor since late June. The bottom of the range still looks solid on the 4-hour chart, and the nearby S1 Pivot Point at $64.70 gives the bulls something to lean on.
If we see bullish candles and momentum holding above $65.00, WTI crude oil could make a move toward the $67.00 mid-range area or even test the $69.40 zone at the top of the range.
But if the price dips below $64.70 and sees sustained trading below the technical support zone, that would open the door for a bearish breakout, possibly dragging USOIL down to $63.00 or even $60.00.
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.
