U.S. crude oil costs proceed to get better after revisiting its August lows final week.
How excessive can WTI crude fly earlier than sellers collect sufficient bearish momentum?
We’re taking a better have a look at a doable resistance space:
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
In case you missed it, an absence of progress on Gaza ceasefire talks helped pull U.S. (WTI) crude oil up from its August lows close to $71.75. It could have additionally helped the commodity that U.S. knowledge releases and FOMC member speeches are pointing to a charge minimize as early as September.
WTI not solely bounced from $71.75, but in addition sustained a bullish momentum all the way in which to its present costs close to $75.25.
Keep in mind that directional biases and volatility situations in market worth are sometimes pushed by fundamentals. In the event you haven’t but finished your homework on crude oil and market sentiment, then it’s time to take a look at the financial calendar and keep up to date on every day basic information!
How excessive can WTI commerce earlier than sufficient sellers step in to vary its course?
WTI is buying and selling near the 4-hour chart’s 200 SMA, which was additionally an space of curiosity earlier this month. Maintain a watch out for bearish candlesticks that will sign a doable bearish reversal from the Black Crack’s newest upswing.
However till we see a possible catalyst, WTI might proceed to attract in shopping for demand. We’re looking out for a possible transfer to the R1 ($76.57) Pivot Level line which is correct across the 200 SMA space. Extra importantly, it’s nearer to a descending triangle resistance that hasn’t been damaged since early July.
Bearish candlesticks after which promoting momentum from the $76.50 – $77.00 space would yield a superb danger ratio for many who expect WTI to revisit its August lows.
In fact, it’s doable that WTI received’t see sustained promoting stress for days.
If WTI busts by means of the resistance areas and sustainably sees bullish candlesticks above the $78.00 space, the commodity might make a play for the $80.00 psychological space or the $82.00 earlier highs.
Whichever manner you resolve to play this setup, ensure you apply correct danger administration and preserve a watch out for main market catalysts arising!