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Looks like U.S. crude oil prices have pulled waaaay back from its March highs!

Will the Black Crack finally see some buying after hitting a short-term support?

Here’s a setup that I’m looking at:

WTI (U.S. Oil): 1-hour

WTI (U.S. Oil) 1-Hour Chart

WTI (U.S. Oil) 1-Hour Chart

After making a play for $130.00, U.S. crude oil (WTI) has taken a chill pill and is now trading around the $94.50 levels.

In case you missed it, optimism over conflict de-escalation in Ukraine has inspired traders to take profits from their bullish oil bets.

The U.S. has also just awarded contracts to release 30 million barrels from the U.S. Strategic Petroleum Reserve as part of the coordinated action between 30 countries to bring down oil prices.

Meanwhile, rising cases and new restrictions in China have led traders to price in weaker demand for black gold.

WTI crude oil is now trading closer to $94.50, which marks a three-week low and a February resistance zone for the commmodity.

The 50 SMA on the 1-hour chart is doing a decent job of limiting WTI’s gains for now but we could see some bullish action if $94.50 continues to hold as support.

I’ll be on the lookout for progress on the Russia-Ukraine peace treaty as well as plans for China’s government to help the economy if needed.

Continued risk-taking could boost WTI from its current levels to the $99.00 short-term range resistance if not the $101.00 zone closer to the 100 SMA.

If the 50 SMA continues to hold, though, then you might want to consider possible breakouts below the $94.50 support.

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