Heads up, commodity traders!
The OPEC will be meeting this week, sony changes in their output deal might mean big moves for crude oil.
Here are the levels to watch.
WTI Crude Oil: 1-hour
Crude oil recently busted through its short-term triangle consolidation pattern and is now gaining traction on its climb.
Price has formed higher lows and higher highs connected by an ascending channel visible on its hourly chart, and the resistance is currently being tested.
This means that a pullback might be in the works yo!This could be a good opportunity for more oil bulls to hop in at better prices, particularly at the 61.8% Fib level that coincides with the channel bottom.
A shallow correction could already bounce off the 50% level near the mid-channel area of interest and 100 SMA dynamic inflection point.
The 100 SMA is above the 200 SMA to confirm that the climb is likely to carry on, with the latter coinciding with the channel support to add to its strength as a floor.
Stochastic is heading south for now, which means that the correction might keep going until oversold conditions are met.Of course whether or not the commodity is able to sustain its climb depends on how the OPEC meeting turns out. Keep in mind that the cartel is under pressure to boost production targets but that most member nations are facing capacity constraints.
Refraining from making any adjustments to their output deal could pave the way for more crude oil rallies, especially since the EU is moving closer to a full embargo on Russian fuel commodities.
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