It looks like WTI crude oil prices are stuck around the middle of its range for now!
Is it in for a bounce back to support soon or about to carry on with its climb to the top?
Take a look at these near-term inflection points I’m watching on the 4-hour time frame:
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
On its 4-hour time frame, WTI crude oil is moving sideways between support at the $66.85 per barrel area and resistance at $77.35 per barrel as geopolitical tensions and global supply concerns have pushed the commodity price around over the past few months.
After closing its price gap thanks to last week’s post-elections rebound, oil got rejected again on its test of the area of interest at the middle of its range.
Where could the energy commodity be headed next?
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!
I’m seeing a small double top pattern with the neckline at the $70 per barrel mark, so a break below this level could set off a move down to the range support once again.
On the other hand, a strong rally past the support-turned-resistance zone at R1 ($72.22 per barrel) could clear the way for a move back to the range resistance. Just make sure to keep an eye out for selling pressure around R2 ($74.07 per barrel) which is also near a major psychological level.
As always, stay on your toes for headlines that could impact overall market sentiment and practice proper position sizing when taking any trades!
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