Missed the bullish breakout on WTI crude oil?
You might still have a chance to catch the rally on this quick retest!
Here are the nearby support levels to keep tabs on.
WTI Crude Oil (USOIL): 4-hour
WTI Crude Oil (USOIL) 4-hour Chart
I’ve had this crude oil falling wedge pattern on my radar for quite some time now, so I’m pretty stoked to finally see a breakout!
Is the commodity in for a big rally from here?
Oil could climb by the same height as the chart pattern, but it appears to be hitting a roadblock at current levels.If this keeps holding as near-term resistance, price could retreat to the support levels marked by the Fibonacci retracement tool. I’ve got my eye on the 50% to 61.8% Fibs, which are close to the broken wedge resistance.
If bulls charge around any of these levels, crude oil’s uptrend could gain traction and possibly even send the commodity price back up to its record highs.
Market fundamentals are looking solid, as the EIA is expected to report another reduction in stockpiles. A draw of 2.4 million barrels is projected to follow the previous drop of 7.1 million barrels, suggesting that demand remains elevated.
Also, word through the grapevine is that the OPEC+ is mulling production cuts in order to keep oil prices afloat. As it turns out, Saudi Arabia is foreseeing a jump in global oil supply from Iran, so adjustments might be needed.
Of course this hinges on whether or not the Iran nuclear deal pushes through, so make sure you keep tabs on news updates!
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