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Staying away from fiat currencies ahead of central bank decisions?

How about some commodities action?

Take a look at where U.S. crude oil (WTI) is hanging out on the daily time frame!

WTI Crude Oil (USOIL): Daily

WTI Crude Oil (USOIL) Daily Chart

WTI Crude Oil (USOIL) Daily Chart

In case you were too busy trading shorter time frames, you should know that WTI crude started an uptrend in May 2020 and hasn’t traded below its trend line support since.

The party hit a snag in March this year when tons of sellers showed up at the $130 psychological level.

WTI crude is now trading at the $85 – $88 zone, which is near the trend line support, 61.8% Fibonacci retracement of 2022’s upswing, AND the resistance zone in October 2021 and January 2022.

Is WTI ready to extend its long-term uptrend?

Stochastic is currently favoring a bullish bounce as it forms a bullish divergence with daily chart prices.

And then there’s this week’s OPEC+ meetings.

Word around is that Saudi Arabia – the group’s de facto leader – is under pressure to keep prices close to $100.

Saudi Arabia can use this week’s OPEC+ meetings to repeat talks of output supply cuts should Iran make nuclear deals with global superpowers and put its own crude oil stocks back in mainstream markets.

If we hear details about output supply cuts, crude oil benchmarks like WTI could head back above $100 and trade above the 100 and 200 SMAs.

I’m not discounting more risk aversion, however.

If investors focus more on tight monetary policies amidst sus global growth prospects, then “risky” bets like crude oil might continue to take hits.

WTI could dip below its trend line support and revisit areas of interest like $78 or even $72.

Watch the newswires closely for clues on WTI’s next direction!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.