With the OPEC huddle going on this week, I’m expecting a bit more volatility for crude oil.
Will we see a bullish pullback soon? Check out these areas where buyers might be waiting.
WTI Crude Oil: 4-hour
Crude oil has been cruising upwards, forming higher lows and higher highs inside a rising channel on its 4-hour time frame.The channel resistance is holding as a ceiling for now, so the commodity might pull back to nearby support levels marked by the Fibonacci retracement tool.
The 38.2% level is looking like a prime spot for buyers, as it lines up with the mid-channel area of interest, former resistance around $73 per barrel, and the dynamic inflection points at the 100 SMA and 200 SMA.
Heck, a bullish moving average crossover appears to be brewing, too!
Stochastic is already on the move up, adding confirmation that bulls are ready to charge and take crude oil back up to the swing high at $77.37 per barrel or the channel top closer to $78 per barrel.
All this could hinge on the outcome of the OPEC meetings, though, as the cartel is widely expected to maintain its output boost target of 400K barrels per day until next month.Oil traders would likely pay close attention to any revisions in their supply and demand forecasts, as well as actual production figures from the member countries.
If the figures indicate that the OPEC is unable to meet its output goals again or that global demand appears unaffected by Omicron concerns, crude oil might be in for a much steeper climb.
Will we see WTI crude oil back above $80 per barrel soon? Sound off in the comments section below!
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.