U.S. crude oil prices look ready to break above a technical consolidation.
Will this lead to another upswing for the commodity?
The 4-hour chart may give us more clues:
WTI Crude Oil (USOIL): 4-hour
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
WTI crude oil (U.S. crude oil prices) currently have candlesticks above $82.00, which puts the Black Crack above a consolidation area that’s been around since the previous week.
And why not? Weak economic reports from the U.S. are supporting Fed interest rate cut speculations and encouraging risk-taking in the markets. It also doesn’t hurt oil prices that geopolitical conflicts between Israel and Iran-backed Hezbollah are heating up and threatening the consistency of supply from the region.
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 crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!Will USOIL’s trip above its current consolidation lead to new June highs for the commodity?
Look out for selling pressure at the R1 ($81.31) Pivot Point line in case the technical resistance area attracts sellers when today’s U.S. core PCE price index report encourages risk aversion or USD-buying.
Consistent trading above the R1 potential resistance zone would set up the asset for a potential move to the $84.00 psychological level near the R2 Pivot Point and previous resistance area.
On the other hand, a rejection from the $82.00 levels may drag USOIL back to its range between the $80.00 and $81.00 levels. A move back to the $79.96 Pivot Point line or $79.00 is also on the table if today’s themes encourage profit-taking near the end of the trading month and quarter.
What do you think? Will crude oil prices make new monthly highs before the week ends? Or will the bears pounce and drag it back to its previous consolidation?