WTI crude oil is consolidating near a key support area!
Are we looking at one of the best levels to enter its uptrend?
Let’s take a closer look at the 4-hour time frame:
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
Oil prices dropped hard to kick off the week as Middle East tensions cooled, and supply fears took a backseat. Iran’s response to the U.S. strikes was fairly restrained, and Trump called for lower oil prices, which helped tone things down. Sentiment settled further after he posted that China could go on buying oil from Iran.
Meanwhile, the dollar stayed under pressure after Fed Chair Powell’s Tuesday testimony added fuel to the idea that a July rate hike might still be in play.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your 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!
USOIL turned lower from that $76.00 June ceiling earlier this week and has since taken a steep dive, now hovering near the $65.25 zone.
That area is no random spot! It aligns with the S2 Pivot around $64.69, the 4-hour 200 SMA, and a trend line that has held since May.
What is catching traders’ eyes now are those long 4-hour wicks showing up, which might be signaling that crude has found a short-term floor.
If we start seeing more green candles and a bit of bullish momentum, WTI could bounce back toward the $70.00 handle, maybe even the $72.00 zone if traders start leaning into that expected summer demand boost.
But if the red candles keep coming or price breaks below that trend line for real, we might be looking at a trip down to the $62.00 to $63.00 pocket.
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.
