Missed the break lower on WTI crude oil?
Don’t fret just yet! A bearish pullback opportunity seems to be shaping up right here.
WTI Crude Oil (USOIL): 1-hour
WTI Crude Oil (USOIL) 1-hour Chart
Heads up, crude oil bears!
Another chance to hop in the selloff might come up soon, as price is pausing on its latest slide. Support at the $78 per barrel area is holding, possibly sending oil back up to the Fib retracement levels shown above.
In particular, I’m keeping close tabs on the 50% level that lines up with a short-term falling trend line and the 61.8% Fib that coincides with an area of interest.
These are right around the $82 per barrel and $83 per barrel levels, too!Also, the 61.8% Fib might be the line in the sand for a bearish pullback since it lines up with the 100 SMA dynamic resistance. A break above this area could suggest that a reversal from the drop is taking place.
If the resistance levels hold, crude oil could tumble back down to the swing low or create new ones.
The 100 SMA is below the 200 SMA for now to indicate that the selloff is more likely to resume than to reverse. Stochastic is just pulling higher from the oversold region, though, so the correction could keep going on until overbought conditions are met.
Better keep an eye out for oil inventory data, as well as any updates from Russia since these tend to impact overall market sentiment.
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