WTI crude oil (USOIL) has been in selloff mode lately.
Buyers seem to be returning to defend the bottom of its range on the 4-hour time frame, though!
Are we about to see a big bounce to its range resistance?
WTI Crude Oil (USOIL): 4-hour
WTI Crude Oil (USOIL) 4-hour Chart Faster with TradingView
Cautious optimism for a peaceful resolution to the US-Iran war has eased oil supply concerns over the past few days.
However, hopes for diplomacy have been shaken by the U.S. Navy blockade and Iran’s re-closure of the Strait of Hormuz.
Trump announced an extension of the ceasefire to give room for negotiations, but talks haven’t been so promising, keeping crude oil traders on edge.
WTI crude oil just bounced off the bottom of its range, around $84.30 per barrel, and has since climbed above the pivot point ($89.55) to suggest that the rally is finding legs.Remember that directional bias and volatility in WTI crude oil are often driven by geopolitical headlines and risk sentiment. If you haven’t done your homework on crude oil and the U.S. dollar, it’s time to check the economic calendar and stay updated on daily fundamental news.
Sustained bullish pressure could keep the energy commodity on its way towards the next upside targets at R1 ($100.09), then the range resistance at R2 ($116.19) and the previous highs.
On the other hand, a return in selling momentum could spur another test of support near the $80 per barrel mark or perhaps a break lower and selloff to the next downside target at S1 ($73.43).
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.
Promoted: Clean Setups Are Easy; Staying Disciplined Isn’t.
WTI crude oil is trading in a range, with a bounce or breakdown still possible. But as any trader learns the hard way, even the best-looking setup can fall apart without the discipline to stick to the plan.
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