WTI crude oil staged a powerful bounce off its falling wedge help on the 4-hour chart however may nonetheless encounter roadblocks at close by resistance ranges.
The Fibonacci retracement device on the most recent selloff exhibits the place extra oil bears could possibly be ready to hitch within the downtrend.
Higher preserve these inflection factors in your radar!
WTI Crude Oil (USOIL) 4-hour Chart by TradingView
Geopolitical developments, significantly these regarding Russia-Ukraine peace talks and recent U.S. sanctions on Iran-related oil entities, look like pushing crude oil round as of late.
As well as, the power commodity is taking cues from hopes that the OPEC+ may delay its deliberate manufacturing hike in April on account of a possible improve in Russian oil flowing into the worldwide markets.
So the place may crude oil costs be headed from right here?
Keep in mind that directional biases and volatility circumstances in market value are sometimes pushed by fundamentals. Should you haven’t but finished your homework on crude oil and the U.S. greenback, then it’s time to take a look at the financial calendar and keep up to date on every day elementary information!
Value is bouncing off its falling wedge help seen on the 4-hour time-frame and is closing in on the Fibonacci retracement ranges. The 38.2% Fib is close to the pivot level degree ($71.15 per barrel) whereas the 61.8% Fib strains up with R1 ($72.14 per barrel) and the wedge resistance.
If any of those maintain as a ceiling, look out for a transfer again to the wedge backside close to the $70 per barrel main psychological mark or a continuation of the slide to the draw back targets at S1 ($69.19 per barrel) then S2 ($68.12 per barrel).
However, an upside break from the wedge high may set off a transfer to the subsequent bullish ranges at R2 ($74.09 per barrel) then R3 ($75.08 per barrel), though the 100 SMA is under the 200 SMA to mirror draw back momentum.
Whichever bias you find yourself buying and selling, don’t neglect to apply correct danger administration and keep conscious of top-tier catalysts that might affect general market sentiment!