U.S. crude oil prices are teasing around a critical support zone on the 4-hour chart—do we see a move higher in the cards for the “Black Gold”? Or are we in for a bearish retake of prior lows before the bulls start to rally back?
An eye-catching image included in the analysis offers a visual on the situation. It’s a WTI Crude Oil (USOIL) 4-hour Chart by TradingView which provides a detailed perspective of the commodity’s current standing.
For those who haven’t been following closely, Wednesday brought a bit of excitement in the oil markets. Price bumps have been spotted as traders manage to absorb developments like the ceasefire between Israel and Hezbollah amid rising U.S. crude oil inventories reported by the EIA. A lower demand for the U.S. dollar adds another layer of support for commodities such as crude oil.
WTI crude, after slipping from around the $71 threshold, is attempting a comeback around $68, which aligns closely to the S1 ($67.98) Pivot Point. Interestingly, this zone coincides with the lower boundary of a range on the 4-hour timeframe.
It’s crucial to keep in mind that market price direction and volatility are typically driven by underlying fundamentals. If you’ve overlooked the homework on crude oil and market mood, it’s essential to tune in to the economic calendar and stay abreast of daily fundamental updates.
So, the million-dollar question remains: Is WTI poised for a move up, or will bearish forces pull it further down before the bulls can take some control? Watch for a steady climb above $68.00 marked by green candles, which might entice short-term momentum players, potentially driving USOIL up to the $70.00 psychological level or even higher to $72.00, marking previous highs.
But, we can’t rule out the opposite scenario—if prices persist below the S1 Pivot Point line, we might see another test of the $67.00 major range support. And if the momentum holds strong enough, a fall below this range might not be out of the question, suggesting a potential downside breakout.
As always, keep your eyes peeled for major market news that could influence sentiment broadly. And don’t forget to apply proper risk management techniques and position sizing in your trades!
