WTI crude oil recently busted out of its triangle consolidation pattern, but buyers could be waiting for a pullback to hop in at better levels.
Check out these inflection points on the 4-hour time frame!
WTI Crude Oil (USOIL): 4-hour
WTI Crude Oil (USOIL) 4-hour Chart Faster with TradingView
WTI crude oil was recently stuck in a holding pattern after the US-Iran war broke out and traders watched geopolitical headlines closely.
The energy commodity recently busted above the symmetrical triangle resistance while the Middle East conflict escalated, putting additional pressure on global supply levels.
Can prices sustain their climb from here?
Crude oil is stalling around R1 ($107.10) and could be due for a quick retest of the broken resistance levels. The Fibonacci retracement tool also shows potential support zones where bulls could be hanging out.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie 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!
The 38.2% Fib is around the $99 per barrel level, while the 50% Fib coincides with the pivot point ($95.74). The 61.8% level could be the line in the sand for a bullish pullback, as it lines up with the former triangle resistance and 100 SMA dynamic support.
The 100 SMA is above the 200 SMA to suggest that buyers still have the upper hand, and the gap between the moving averages is widening to reflect strengthening upside momentum. Keep an eye out for reversal candlesticks around the potential support levels since a bounce could take WTI crude oil back up to the swing high or to the next upside target around R2 ($113.04)
On the other hand, long red candles closing below the Fibs could point to a return in bearish pressure or further consolidation.
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: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on WTI crude oil’s triangle breakout. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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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.
