WTI crude oil made a couple of failed attempts to break below the $62 per barrel mark, creating a potential double bottom on its 4-hour time frame.
Are bulls about to charge soon?
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
Global supply jitters on resurfacing geopolitical tensions are propping the energy commodity higher these days, as investors are keeping close tabs on attacks in the Middle East and in Ukraine.
At the same time, a weakening U.S. dollar on account of rising Fed rate cut expectations for the month are lifting risk assets like crude oil as well.
Can it sustain its climb past the neckline resistance?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the WTI crude oil, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
WTI crude oil is still making its way towards the area of interest around $65-66 per barrel, which could determine whether or not a reversal is underway.
Reversal candlesticks at this area could suggest that resistance is bound to hold, possible dragging the commodity price back down to the lows at the $62 per barrel area.
On the other hand, long green candlesticks closing above the neckline could confirm the uptrend, so look out for a rally of the same height as the chart pattern if this happens. The climb could also hit roadblocks at R2 ($67.73) then R3 ($69.42) next.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
