Remember that support zone we talked about a few days ago?
Well, it turns out the bears had more fuel in the tank than we expected!
Now, USOIL might catch a bid from a trend line support that’s been holding since early September.
What do you think of this 4-hour setup?
WTI Crude Oil (USOIL): 4-hour
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
U.S. crude oil took another hit last week, mostly driven by concerns over China’s growth and easing tensions in the Middle East, which helped cool off some of those global supply worries.
But that was last week.
Over the weekend, Israel announced plans to target Hezbollah’s financial operations in Beirut, while China, as expected, cut its benchmark lending rates to help boost the economy with more stimulus.
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!If Middle East tensions flare up again and China’s growth concerns ease in the next few days, then U.S. oil prices could see sustained buying demand.
WTI crude, which is hanging out near $68.00, could draw in demand from an ascending channel support that’s been around since September.
Look out for sustained trading above the $70.00 psychological level, the $70.50 Pivot Point line, or the 4-hour chart’s 200 SMA. Consistent demand above the areas of interest could lead to a bullish upswing that could take WTI crude to the $73.00 inflection point.
On the other hand, WTI crude oil bears could sustain their momentum.
If you see WTI crude prices trading consistently below $68.00, then we should at least consider the possibility of USOIL extending a longer-term downtrend and revisiting previous support zones like $66.00 or $65.50.
What do you think? Which way will USOIL prices go in the next few days?